2) How does capacity utilization influence the extent of entry barriers? D) Price is equal to minimum average variable costs. Last year, the company's estimated manufacturing overhead was $1,800,000 and its, For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $11. 5. d. unemployment is very low. b. aggregate supply of goods is likely to remain constant. Concerns regarding the visibility of all aspects of supply chains and the traceability of materials along supply chains were focused upon. According to conversations with its investment bankers, the firm will receive$60 per share from the sale of new common stock. a. 8. What internal and external governance mechanisms are in place in microcredit? a) What design capacity would be needed to achieve an actual output o Our company's manufacturing facility uses work cells. The firm is currently producing 52 units of output, marginal cost is $17, average total cost is $15 and average va, If a competitive firm is selling 1,000 units of its product at a price of $9 per unit and earning a positive profit, then: a. its total cost is less than $9,000. The firm has cash of $12,000 and office equipment of$13,000. Capacity planning applies only to manufacturing companies. When capacity is inadequate, market share can shrink. Its average resource utilization per year is calculated as 70%. (a) include staffing and scheduling (b) include inventory control (c) include defining product specifications (d) None of the above. Mark Customers arrive at a bank at a rate of 50 per hour. -most of the activities can be grouped into 4 business functions A foreign wholesaler offers to purchase 2,000 scales at $15 each. - research and development, is responsible for the acquisition of goods and services, is responsible for the transformation required by the production process, is responsible for the movement of materials in the production system, is responsible for the design of new products, determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers; also called the sourcing decision, when a firm buys components and raw materials globally, - One advantages of buying is that the firm does not need to invest in the complete production process; global suppliers are selling to many companies in the same industry but in different countries, and achieve superior economies of scale and scope; sometimes global procurement is required as a result of a business practice known as offsets. The [{Blank}] is the maximum capacity at which a facility can run under ideal conditions. The company's targets are high, and they are able to generate substantial profits. This firm is producing in the short run (remember that, A firm's production function is y=100KL where y is the output level, K is the level of capital and L is the level of labour. Given the following diagram, a. The extent to which customers are satisfied sufficiently to remain customers. b. innovation. What. The unit hiring cost is $150/FTE and the unit firing cost is $320/FTE. a. Once in production, the PCB machine Jackson has increased staffing levels on some evenings (e.g., first of the month, standard paydays) to reduce patient waiting time. c. unemployment is very low. The line will operate for 450 minutes per day. d. fixed costs are low. 2. All rights reserved. Rio Tinto: Positive 2023 Start (OTCMKTS:RTNTF) | Seeking Alpha B. production of the 100th unit, Cost-leadership firms are typically characterized by very tight cost control systems; frequent and detailed cost control reports; an emphasis on quantitative cost goals and targets; and close supervision of labor, raw materials, inventory, and other costs, A key difference between the production of goods and the performance of services is: a. services generally can't be stored. B. 1. The wage rate w = 4 and the rental price of capital r = 4 are taken as parameters (fixed) by the f. A manufacturing company supplies its bricks to industrial job sites. (b) demand is higher than the minimum efficient scale. Can your father do so? Gross margin. The normal production capacity for the Fabrication Department is 10,000, A firm combines labor (L) and capital (K) to produce output (Q). Decision . The normal selling price of this product is $50.50 each. The average monthly fixed cost per site is RM 25,500, while each unit cost RM 78 to produce and selling price is RM 180 per unit. ______ is responsible for the design of new products in the production process. In addition to the impacts from power generation, there are also impacts associated with extracting, producing, and transporting certain fuels such as coal and natural gas. The average safety capacity of Scorla Corp. is ____. The Austin, Texas plant of Computer Products produces disk units for personal and small business computers. What is its expected output per week? However, its fixed assets were used at only 75% of capacity. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. Chapter 14 Global Production, Outsourcing, and Logistics - Studylib However, many automotive manufacturing companies today use this theory. When making supply chain decisions, such as where in the world to locate a new plant or whether to use a foreign or domestic supplier, most managers rely on the discounted cash flow (DCF) model to. In light of the statement, explain why capacity planning decision is important. When evaluating a firm with excess capacity, what is true? b. demand is higher than the minimum efficient scale. At present, your company only makes metal components. 30% c. 20% d. 50%. He did some research and knows that the average price of gas in Spain is approximately 1.21 euros per liter. a) What is the Economic Prod, Consider a product with a daily demand of 400 units, a setup cost per production run of $100. Find the firm's short-run cost function, if Ki is fixed at $100,000. d. is earning negative economic profit. d. Dividends were $1,250 cash per month, and the owner invested an additional$35,000 cash in exchange for common stock. Some impacts vary based on the energy resourcefor example, whether the power plant uses fossil fuel or a renewable resource. its costs are C(x,y,z) = 3200 + 0.4x + 0,2y + 8y^2 + 0.8z . The firm operate, A firm produces a product with labor and capital as inputs, with the production function Q = LK, Let w= 1 ad r=1 be the prices of labor and capital, respectively. Which of the following is a direct input into capacity requirements planning? Each backpack has a gross profit of $40, a holding cost of $10, and a shortage cost of $15. The following set of jobs must be processed serially through a two-step system. The production function for a product is given by Q = 100KL. 3. BeginningoftheyearEndoftheyearAssets$60,000105,000Liabilities$20,00036,000. The cost of an aerobic digester system with a capacity of 140 million gallons per day (MGD) is $2.1 million. recently, the production facility has been producing A manufacturing shop is designed to operate most efficiently at an output of 860 units per day. The operation has a design capacity of 10 lo A firm is said to have excess capacity when: 1. it produces a level of output such that marginal revenue equals price. 11.One production facility will usually be favored when a. b. demand is higher than the minimum efficient scale. The company needs to raise $48,000,000,000 to expand its factory. A balanced line with sin A hospital emergency room averages 50 patients per shift. The customers arrive at an average rate of 6 per hour. 7. financial considerations b. A decrease in the economy's capacity utilization rate: a. tends to decrease the unemployment rate. B. normal capacity. d. the pri A hospital has 30 labor rooms, 15 combination labor and delivery rooms, 3 delivery rooms, and 1 special delivery room reserved for complicated births. In millions, how large could sales have been if the comp North Construction had $850 million of sales last year, and it had $425 million of fixed assets that were used at only 60% of capacity. a) A long rectangular sheet of metal 12 in wide is to be made into a trough by turning up two sides to form right angles. - design the system as a collection of business processes and not functions, a property of ERP systems to simultaneously operate in multiple languages, a property of ERP systems to handle the accounting standards of multiple countries, a property of ERP systems to handle multiple currencies, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Suppose that a firm's production function is q= 10L 0.8K0.2. A firm uses 1 capital for every 5 workers to produce 1 output. Become a Study.com member to unlock this answer! b. the resources will be efficiently used. The company does not make the gears it uses in its products, it, purchases them from a supplier in Hong Kong. Market Penetration iii. From: Enhanced Recovery Methods for Heavy Oil and Tar Sands, 2009 2. C. full employment and actual employment. Overapplied overhead will result if: a. overhead costs incurred were greater than overhead charged to production; b. the plant is operated at less than expected capacity; c. overhead costs incurred, A firm's production function is given by Q = K^{1/2}L^{1/2} and that capital is fixed at 1 unit. One production facility will usually be favored when _______. The standard quantity requ, Supose the marginal product of labor is currently equal to its average product. Motor X sells for $2,500 and has an efficiency rating of 9 Amy Xia's plant is designed to produce 7,000 hammers per day but is limited to making 5,600 hammers per day because of the time needed to change equipment between styles of hammers. View an interactive version of this diagram >>. Find the number of machines required to produce 3000 parts per week. \text{End of the year} \ldots\ldots\ldots & \text{105,000} & \text{36,000}\\ Marketing. When capacity utilization rate is high: a. the rate of interest is likely to decrease. What are some of the pros and cons of pursuing identified community needs as part of a strategic planning process? At 24 years old Dominy helped build, 1. From here, the librarie Battonkill Company, operating at full capacity, sold 124,200 units at $63/unit in 2014. The total production capacity in CO and SC are respectively 250 and 400 units. Very high assets and turnover. The rate of inflation in the economy over that year period is which of the following? The company's standards call for 2 DLHs for each unit produc, Companies that produce large numbers of standardized products within a particular batch would most likely use which type of costing? Each machine requires two operators. a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country; A company would locate the production facilities in these countries that offer the best comparative advantage, Goods with high value-to-weight ratios are expensive but do not weigh very much. WGU_FVC1_Ch13_Global Operations and Supply-Ch 105 terms. a. One production facility will usually be favored when a. a company is extremely profitable. (a) a company is extremely profitable (b) demand is higher than the minimum efficient scale (c) unemployment is very low (d) fixed. A) absorption B) break-even, 1.A profit-maximizing firm will base its decision to hire workers on the additional costs and benefits of each worker. b. Both products are produced on the same machining operation. A manufacturing plant costs approximately $500 million to construct and requires a highly skilled work force. 5. secures the supply source Determine the utilization and the efficiency for each of these situations: a. The products are very popular, with demands far exceeding the factory's capacity. The company has determined that it wants to have safet A firm wishes to determine the efficiency and utilization of a work center composed of 5 machines each working 16 hours per day for 5 days a week. - the firm would incur both fixed and variable costs, while when buying, the firm will only incur variable costs.
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