You sell 2 products. Product one has sales of $50,000 on volume of 1,000. Each...
70.2K
Verified Solution
Link Copied!
Question
Accounting
You sell 2 products. Product one has sales of $50,000 on volume of 1,000. Each unit needs 9.4 minutes to inspect. Costs are $21452 variable and $10020 fixed. Product 2 has sales of $150,000 on volume of 2,000. Each unit needs 13.4 minutes to inspect. Costs are $59820 variable and $41473 fixed. Assume that inspection time is scarce. Calculate the total shadow cost of inspection time in $ / hour (round to the dollar). Answer: Notwithstanding your answer to the last question, assume the shadow cost is $150/hour. You are considering adding a third product. The third product would sell for $72 per unit. Variable cost to produce it would be $21 per unit and fixed costs would be $18591. Inspection time for the product would be 15.6 minutes per unit. Calculate the breakeven volume for this new product, taking opportunity cost into account. Answer: This situation is an example of which type of product interaction? a. Supply substitution O b. Demand substitution O c. Demand complement O d. Supply complement
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
