Production Cost Analysis and Estimation Applied Problems
Week 3 - Assignment
Production Absorb Analysis and Estimation Applied Problems
Please accomplished the behindcited two applied problems:
William is the possessor of a trivial pizza stock and is thinking of increasing works and murky absorbs. William’s pizza stock owns foul-mouthed ovens and the absorb of the foul-mouthed ovens is $1,000. Each worker is remunerated $500 per week.
Qty of pizzas done per week
Show all of your calculations and processes. Describe your vindication for each inquiry in accomplished sentences, whenever it is essential.
Which inputs are unwandering and which are changeable in the origination discharge of William’s pizza stock? Balance what ranges do there acceptance to be increasing, unroving, and/or powerless avail to the enumerate of workers occupied?
What enumerate of workers acceptances to be most prolific in conditions of pizza work per worker?
What enumerate of workers acceptances to minimize the ultimate absorb of pizza origination gorgeous that each pizza worker is remunerated $500 per week?
Why would ultimate workivity refuse when you rent balance workers in the inextensive run behind a undoubtful flatten?
How would opening the employment influence the economies of lamina? When would you possess unroving avail to lamina or diseconomies of lamina? Describe your vindication.
The Paradise Shoes Guild has admired its weekly TVC discharge from facts cool balance the late distinct months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the whole changeable absorb and Q represents pairs of shoes done per week. And its call-for equation is Q = 4100 – 25P. The guild is currently surrendering 1,000 pairs of shoes weekly and is because opening its output to 1,200 pairs of shoes weekly. To do this, it achieve possess to lease another shoe-making tool ($2,000 per week unwandering liquidation until the lease bound ends).
Show all of your calculations and processes. Describe your vindication for each ace beneath in accomplished sentences, whenever it is essential.
Describe and trace an countenance for the ultimate absorb (MC) incurvation.
Describe and admire the incremental absorbs of the extra 200 pairs per week (from 1,000 pairs to 1,200 pairs of shoes).
What are the profit-maximizing figure and output flattens for Paradise Shoes? Describe and consider the profit-maximizing figure and output.
Discuss whether or not Paradise Shoes should open its output exalt more 1,200 pairs per week. State all assumptions and qualifications that underlie your warning.
Carefully criticism the Grading Rubric (Links to an outer aspect.)Links to an outer aspect. for the criteria that achieve be used to evaluate your assignment.