Answer:
31,600 donuts
Explanation:
Break even point is the level of activity where a company makes neither a profit nor a loss.
Break even point (units) = Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Sales per unit - Variable Costs per unit
Step 1 : Sales per donut
Sales per donut = $0.36
Step 2 : Variable Cost per Donut
Variable Cost per Donut :
Flours ($2 ÷ 40) $0.05
Sugars ($5 ÷ 100) $0.05
Butter ($1 ÷ 100) $0.01
Total $0.11
Step 3 : Fixed cost per month
Rent $1,800
corporate tax $100
Salary ($200 x 30) $6,000
Total $7,900
therefore,
Break even point = $7,900 ÷ ($0.36 - $0.11)
= 31,600 donuts
Conclusion :
Dr. Chu sell 31,600 donuts in a month to break-even.
Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 15 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share
Answer:
$ 3.87
Explanation:
It is given that :
Cost of the company's stock per share = $ 90
The required return on the stock is = 15 %
Therefore, the dividend yield = [tex]$\frac{9}{2}=4.5$[/tex]
We known that
[tex]$\frac{\text{dividend in one year}}{\text{current price}}=0.045$[/tex]
[tex]$D_1=0.045 \times 90$[/tex]
= 4.05
The current dividend is,
[tex]$D_0= \frac{4.05}{1.045}$[/tex]
= $ 3.87
In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The sales volume variance, in terms of operating income, for September (to the nearest dollar) was:
Answer:
The sales volume variance is $20,000 Unfavorable.
Explanation:
Particular : Actual ; Flexible Budget ; Variance
Sales : 240,000 ; 300,000 ; 60,000 U
Variable Cost : 200,000 ; 192,000 ; 8,000 U
Contribution Margin : 40,000 ; 108,000 ; 68,000 U
Fixed Cost : 25,000 ; 80,000 ; 55,000 U
Operating Income : 15,000 ; 28,000 ; 20,000U
The Michael Miller Corporation has a sales budget for next month of $200,000. Cost of goods sold is expected to be $125,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $8,000, and an ending inventory of $6,000 is desired. Beginning accounts payable is $26,000. How much merchandise inventory will The Michael Miller Corporation need to purchase next month
Answer:
the inventory to be purchased next month is $123,000
Explanation:
The computation of the inventory to be purchased next month is shown below:
= Cost of goods sold + closing inventory - opening inventory
= $125,000 + $6,000 - $8,000
= $123,000
hence, the inventory to be purchased next month is $123,000
We simply applied the above formula so that the purchase value of the inventory could come
The purpose of a theory, in general, is to ________________________________. Select the correct answer below: determine the level of economic activity in a society take a complex, real-world issue and simplify it down to its essentials implement a method to view the world through the same lens as other disciplines, such as anthropology and biology determine which goods and services consumers are most likely to select
Answer:
take a complex, real-world issue and simplify it down to its essentials.
Explanation:
A theory can be defined as a simplified but abstract representation that gives a detailed relationship about the interaction between two or more variables.
Generally, the main purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials. Thus, in economics, a theory gives a detailed explanation and an understanding of issues such as inflation, recession, taxation, etc and any problem associated with them.
In order to test theories, economists usually make use of economical models such as the production possibility frontier (PPF), Mundell-Fleming model, Classical model, Keynesian IS/LM model, Solow growth model, etc.
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 3,195. Case’s share of that market was 16 percent, while Fiat comprised just 8 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase?
Answer:
the increase resulting from this merger = 256
Explanation:
before the merger, both Fiat and Case's contribution to Herfindahl-Hirschman index = 16² + 8² = 320
after the merger, Fiat and Case's contribution to Herfindahl-Hirschman index = 24² = 576
the increase resulting from this merger = 576 - 320 = 256
Carradine Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on machine-hours. The company based its predetermined overhead rate for
the current year on total fixed manufacturing overhead cost of $105,000, variable manufacturing
overhead of $3.00 per machine-hour, and 70,000 machine-hours. The company recently
completed Job P233 which required 60 machine-hours. The amount of overhead applied to Job
P233 is closest to:
A) $90
B) $270
C) $450
D) $180
Answer:
Answer:
Amount of overhead applied is $270
correct option is (a) $270
Explanation:
given data
overhead cost = $105,000
overheat rate = $3 per machine hour
manufacturing overhead = 70000 machine hour
required = 60 machine hours
to find out
The amount of overhead applied to Job P 233 is closest to
solution
we find manufacturing overhead rate here that is
manufacturing overhead rate =
put here value
manufacturing overhead rate =
manufacturing overhead rate = 1.5 per machine hour
and
Total manufacturing overhead rate will be for overheat rate $3
Total manufacturing overhead rate = (3 + 1.5) = $4.5 per machine hour
so we can say that Amount of overhead is job P 233 is
Amount of overhead applied = 60 × $4.5 = 270
so here correct option is (a) $270
Explanation:
Consider the following information:
Portfolio Expected Return Beta
Risk-free 11% 0
Market 12.2 1.0
A 11.0 0.9
A. Calculate the expected return of portfolio A with a beta of 0.9.
B. What is the alpha of portfolio A.
C. If the simple CAPM is valid, is the above situation possible?
A company issues $14500000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14164836. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet?
Answer:$14,709,481
Explanation:
$14,709,481
$14,703,108 + [($14,703,108 × .04) - $585,000] + [$14,706,232 × .04) - $585,000] = $14,709,481.
The law of comparative advantage suggests thata.both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.b.Qatar would not gain from trade because it has an absolute advantage in producing both goods.c.neither country would gain from trade, even if the costs for transporting the products were zero.d.both countries would gain if Botswana traded wine made in Botswana for Qatar's wheat.
Answer:
A)both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.
Explanation:
The law of comparative advantage can be regarded as one set up by David Ricardo in the year 1817, which gives reason that is behind international trade that exist between different countries , even the business, workers as well as factories of a country have efficiency at production of every single good compare to other country.
Comparative advantage shows the ability of an economy have in production of a particular good/ service having lower opportunity cost compare to its trading partners.
On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $6,000,000. The company expects to extract 1,000,000 tons of coal during a four-year period. During 2021, 250,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2021. 2. Is depletion considered part of the product cost and included in the cost of inventory?
Answer:
The Loadstone Mining Company
1. The depletion for 2021 is:
= $1,500,000.
2. Depletion is considered part of the product cost and included in the cost of inventory.
Explanation:
a) Cost of rights to a coal mine = $6,000,000
Expected tons of coal to be extracted = 1,000,000 tons
Duration of the coal mine = 4 years
Depletion rate per ton = $6 ($6,000,000/1,000,000)
2021 depletion = $6 * 250,000 = $1,500,000
b) Depletion is like depreciation. While depreciation spreads the cost of a tangible asset over its estimated useful life, depletion measures the cost of extracting natural resources based on the number of units extracted vis-a-vis the total quantity available. Amortization is another related term but relates to intangible assets. It is the deduction of the value of an intangible asset over its useful life.
On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2021: Cost Retail Beginning inventory $ 81,000 $ 150,000 Net purchases 121,500 278,000 Net markups 8,000 Net markdowns 16,000 Net sales 228,000 Retail price index, 12/31/2021 1.20 Required: Calculate the estimated ending inventory and cost of goods sold for 2021 using the information provided.
Answer:
Brunswick Hat Company
The estimated ending inventory = $85,400
The estimated cost of goods sold for 2021 = $117,100
Explanation:
a) Data and Calculations:
Cost Retail
Beginning inventory $ 81,000 $ 150,000
Net purchases 121,500 278,000
Net markups 8,000
Net markdowns (16,000)
Goods available 202,500 420,000
Net sales 228,000
Ending inventory at retail price 192,000
Ending inventory
at cost 85,400
Cost of goods sold 117,100
Retail price index, 12/31/2021 1.20
Base year cost to retail price % = $81,000/$150,000 = 54%
2021 cost to retail price % = $121,500/$278,000 = 44%
Ending inventory at cost (= $160,000 ($192,000/1.20))
$150,000 * 54% = $81,000
$10,000 * 44% = 4,400
$160,000 = $85,400
If a French bank opens a new branch office in California, where does this transaction appear in the balance of payments accounts
Answer:
Either U.S or france
Partnership business examples
Answer:
GoPro & Red Bull.
Pottery Barn & Sherwin-Williams.
Casper & West Elm.
Kanye and Adidas.
BMW & Louis Vuitton.
Starbucks & Spotify.
Apple & MasterCard.
Unintentionally, David built in his backyard a garage that encroached two feet across the property line onto property owned by his neighbor, Harold. When the mistake was recognized immediately thereafter, David and Harold agreed in writing that David did not need to move the garage. The statutory period for the running of adverse possession in the state where the property is located is 15 years. Five years after the garage was completed, David sold his property to Nancy. Twenty years after Nancy purchased the property from David, Nancy claimed she had acquired the two feet of property through application of the doctrine of adverse possession. In a legal dispute between Nancy and Harold over ownership to the two feet Nancy now claims, which statement is most accurate:
Answer:
Nancy will prevail as she has used the property, openly as hers for over 15 years.
Explanation:
Since in the question it is given that nancy would prevail as she is able to used the property and for her it is open for above 15 years
Also the conditions related to the adverse possession would be fulfilled
So as per given situation, the above represent the answer
the same would be relevant
Going by the principle of adverse possession, the fact that Nancy has used the land beyond the statutory period of 15 years means that "Nancy will prevail as she has used the property, openly as hers for over 15 years."
The principle of adverse possession affirms that the possession of somebody else's land for an extended period of time might give the occupant the legal right of claiming ownership of the land. Nancy has up he land for 20 years since she purchased it from David, which is beyond the statutory period.Hence, Nancy would prevail since going by the principle of adverse possession.
Learn more : https://brainly.com/question/22711915
A plant asset was purchased on January 1 for $140000 with an estimated salvage value of $20000 at the end of its useful life. The current year's Depreciation Expense is $10000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $40000. The remaining useful life of the plant asset is
Answer:
useful life= 12 years
Explanation:
Giving the following information:
Purchase price= $140,000
Salvage value= $20,000
Annual depreciation= $10,000
To calculate the useful life, we need to use the straight-line method formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
10,000= (140,00 - 20,000) / useful life
10,000useful life = 120,000
useful life= 120,000 / 10,000
useful life= 12 years
On December 31, 2020, Vaughn Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Vaughn Co. agreed to accept a $261,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Vaughn is much more creditworthy and has various lines of credit at 6%.
Prepare the journal entry to record the transaction of December 31, 2015, for the Ed Abbey Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically Indented when the amount is entered. Do not indent manually.)
Answer:
1. 31 Dec
Dr Notes receivable $261,600
Dr Discount on notes receivable $45,401
Cr Sales revenue $216,199
B. 31-Dec
Dr Discount on notes receivable $21,619.9
Cr Interest revenue $21,619.9
C. Dec-31
Dr Discount on notes receivable $23,781.1
interest revenue $23,781.1
Dr Cash $261,600
Cr Notes receivable $261,600
Explanation:
A. Preparation of the journal entry to record the transaction of December 31, 2015, for the Ed Abbey Co
December 31, 2015
Dr Notes receivable $261,600
Dr Discount on notes receivable $45,401
($261,600-$216,199)
Cr Sales revenue $216,199
Computation of present value of note
PV of $261,600 due in 2 years at 10%
$261,600*.82645 = $216,199
B. Preparation of the journal entry for December 31, 2016
31-Dec
Dr Discount on notes receivable $21,619.9
[10%*$216,199]
Cr Interest revenue $21,619.9
C. Preparation of the journal entry for December 31, 2017
Dec-31
Dr Discount on notes receivable $23,781.1
interest revenue $23,781.1
($45,401-$21,619.9 )
Dr Cash $261,600
Cr Notes receivable $261,600
How can life expectancy and literacy rates affect the quality of labor in the economy?
Explanation:
Life expectancy and literacy rates can affect the quality of labor in the economy because if citizens are literate, they are educated and likely have white-collar jobs. Citizens who are illiterate likely have more manual labor jobs.A nation with lower fertility rates will usually have less people, and scarce resources will take longer to run out
Fairfield Company allocates common Building Department costs to producing departments (P1 and P2) based on space occupied, and it allocates common Personnel Department costs based on the number of employees. Space occupancy and employee data are as follows: Building Personnel Dept. P1 Dept. P2 Space occupied 2,000 ft. 10,000 ft. 120,000 ft. 70,000 ft. Employees 6 10 80 50 If Fairfield Company uses the direct allocation method, the ratio representing the portion of building costs allocated to Department P1 is a.120,000/202,000. b.190,000/202,000. c.2,000/120,000. d.120,000/190,000.
Answer:
d.120,000/190,000
Explanation:
It is given that Fairfield Company is constructing building department (P1 and P2) in the space provided and it allocates the common Personnel Department cost that is based on number of employees.
From the table given in the question, we can find
The ratio representing the portion of the building cost allocated to the department P1 = [tex]$\frac{120,000}{(120,000+70,000)}$[/tex]
The ratio representing the portion of the building cost allocated to the department P1 = [tex]$\frac{120,000}{190,000}$[/tex]
Isaiah is a Financial Quantitative Analyst for a major stock investment company. What does Isaiah do on a daily basis as a part of his job?
He researches, analyzes, and summarizes information about fraud.
He assesses financial situations using mathematical models.
He analyzes tax information using mathematical formulas.
He manages the paperwork for buying and selling securities.
Answer:
He researches, analyzes, and summarizes information about fraud.
Answer:
A
Explanation:
He researches, analyzes, and summarizes information about fraud.
Task 1: Answer the following questions in your notebook
1. What do you know about drug use?
2. What are the signs and symptoms of drug abuse?
he first activity.
Answer:
1. drug use can be harmful and also damages they way you think or do things for example if you have to much you feel like your going to pass out and do wierd actions.
2. some signs are you feel really tired and your eyes may want to close or you have to much and you feel like your fainting and if your around people you tend to act really badly and say where things
1. Drug use is the use of drugs for psychotropic rather than medical purposes.
2. Some symptoms include changes in appearance, dilated/constricted pupils, changes in hygiene, etc.
Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,588 cups of flour to make 4,800 biscuits. The standard cost per cup of flour is $0.54. A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance
Answer:
Results are below.
Explanation:
To calculate the direct material rate and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.55 - 0.54)*4,000
Direct material price variance= $40 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (0.75*4,800 - 3,588)*0.55
Direct material quantity variance= $6.6 favorable
Finally, the total variance:
Total direct material variance= 40 + 6.6= $46.6 favorable
Daniel, age 38, is single and has the following income and expenses in 2020:
Salary income $87,000
Net rent income 2,500
Dividend income 1,300
Payment of alimony (divorce finalized in March 2019) 26,000
Mortgage interest on residence 5,700
Property tax on residence 2,600
Contribution to traditional IRA (assume the amount is fully deductible) 2,400
Contribution to United Church 2,700
Loss on the sale of real estate (held for investment) 825
Medical expenses 4,600
State income tax 2,100
Federal income tax 7,100
Required:
What is Daniel's gross income and his AGI?
Answer:
A. $90,800
B. $87,575
Explanation:
Calculation to determine Daniel's gross income and his AGI
A. Calculation for the Gross income using this formula
Gross income=Salary income + Net rent income + Dividend income
Let plug in the formula
Gross income= $87,000 + 2,500 + 1,300
Gross income=$90,800
Therefore her Gross income is $90,800
B. Calculation to determine the AGI using this formula
AGI=Gross income - (Contribution to traditional IRA + Loss on sale of real estate)
Let plug in the formula
AGI= $90,800 - ($2,400 + $825)
AGI=$90,800-$3,225
AGI=$87,575
Therefore her AGI is $87,575
True or False: A partner cannot legally bind the other partners to a business agreement.
Answer: False
Explanation: In many cases, a partner will be able to bind the partnership without the other owners' consent. However, steps can be taken to prevent any one partner from entering into an agreement without the consent of the others.
During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for doutbful accounts was $40,000. What is the appropriate year-end adjusting entry Jacobson must use to record bad debts expense and update the allowance for doubtful accounts on December 31, 2018
Answer: Debit: Bad debt expense $21400
Credit: Allowance for doubtful debt $21400
Explanation:
Based on the information given, the bad debt expense will be:
= 49400- (40000-18000+6000)]
= 49400 - 28000
= 21,400
The bad debt expenses of $21400 will be debited
The Allowance for doubtful Accounts of $21400 will be credited.
(To record bad debts expense)
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find
Answer: See explanation
Explanation:
The remainder of the question:
a). The optimal run size
b) The number of runs per year
c) The length (in days) of a run.
From the question,
p = 5000
u = 250 hotdogs per day
D = 250 × 300 = 75000 hotdogs/year
S = $66
H = 45 cents = $0.45
a. The optimal run size
= (✓2DS/✓H)(✓p/✓-✓u)
= (✓2×75000×66/✓0.45)(✓5000/✓4750)
= 4812
b) The number of runs per year
This will be:
= D/Q
= 75000/4812
= 15.59
= 16 runs per year
c) The length (in days) of a run.
This'll be:
= 4812/5000
= 0.96
= 1 day
Cincinnati t-shirts prints custom t-shirts. The cost to produce one shirt is: direct materials, $10; direct labor, $1.20; and manufacturing overhead $4.50. Cincinnati Children’s Hospital asked Cincinnati t-shirt to sell them custom t-shirts for $12 each for a local charity event. Direct material and direct labor are required for each t-shirt. Of the manufacturing overhead, $1.50 is variable and would be incurred on each additional unit. The remaining $3 in overhead is allocated fixed overhead that would not be increased or decreased by this order. What would be the effect on net income if they accept this special order and sell 200 shirts to Cincinnati Children’s Hospital for $12 each?
Answer:
Effect on income= $140 decrease
Explanation:
Giving the following formula:
Production costs:
Direct material= 10
Direct labor= 1.2
Variable overhead= $1.5
Selling price= $12
Number of units= 200
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Effect on income= Units sold*unitary contribution margin
Effect on income= 200*(12 - 10 - 1.2 - 1.5)
Effect on income= $140 decrease
According to Adam Smith, specialization results in higher levels of output for all of the following reasons except: Select the correct answer below: Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage. Specialization allows businesses to take advantage of economies of scale. Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work. Workers who specialize in certain tasks often learn to produce more quickly and with higher quality.
Answer:
Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work
Explanation:
Specialization is when labour concentrates on only a particular job function. For example, let say you work in an office and the only task you are assigned to do is to type because you are good at it. This is an example of specialisation.
Advantages
It increases economies of scaleit increases the efficiency of labour. less time is wasted in changing job functions It increases the skill of labour . by performing the same task repeatedly labor skills improvesDisadvantages
it increases drudgery and boredom
UML Inc. issued 9% bonds on January 1, 2021. The bonds have a maturity date of December 31, 2024 and a face value of $500,000. UML Inc. issued the bonds for $483,842. For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31, beginning June 30, 2021. What is the outstanding balance (book value) of the bonds as of December 31, 2021
Answer:
The outstanding balance (book value) of the bonds as of December 31, 2021 is $480,542.41.
Explanation:
Note: See the attached excel file for the amortization schedule used in calculating the outstanding balance (book value) of the bonds as of December 31, 2021 (in bold red color).
From the attached amortization schedule, we have:
December 31, 2021 Closing book balance = December 31, 2021 Beginning book balance - December 31, 2021 Discount Amortized = $480,542.41
Therefore, the outstanding balance (book value) of the bonds as of December 31, 2021 is $480,542.41.
Which of the following goods is directly counted in GDP? 2) A) the lettuce that Subway purchases for its sandwiches B) a 12-inch Subway sandwich purchased by a student C) the bread that Subway purchases for its sandwiches D) the plastic bags that Subway purchases to wrap its sandwiches 3) Value added equals the market price of the firm's product minus 3) A) depreciation on plant and equipment. B) the price of intermediate goods. C) wages and salaries. D) the price of all factors of production
Answer:
b
b
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
a 12-inch Subway sandwich purchased by a student is the only final good and thus it would be included in GDP as part of consumption spending on non durable goods
the lettuce, the bread and the plastic bags constitute intermediate goods. Including intermediate goods in the calculation of GDP would lead to double counting
The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hour of testing and can be sold for a $250 profit. Each alternator requires 3 hours of wiring and 2 hours of testing and can be sold for a $150 profit. There are 260 hours of wiring time and 140 hours of testing time available in the next production period and Electrotech wants to maximize profit. Formulate an LP model for this problem. Sketch the feasible region for this problem. Determine the optimal solution to this problem using level curves.
Answer:
Given that generators generate greater profit with less consumption of hours, the maximum profit would be building 130 generators, obtaining $ 32,500 of profit, and there would be 10 hours of testing left over.
Explanation:
Since the Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators, and both of these products require wiring and testing during the assembly process, and each generator requires 2 hours of wiring and 1 hour of testing and can be sold for a $ 250 profit, while each alternator requires 3 hours of wiring and 2 hours of testing and can be sold for a $ 150 profit, and there are 260 hours of wiring time and 140 hours of testing time available in the next production period and Electrotech wants to maximize profit, to determine this situation the following mathematical logical reasoning must be carried out:
260/2 = 130
140 - 130 = 10
130 generators = 32,500
Thus, given that generators generate greater profit with less consumption of hours, the maximum profit would be building 130 generators, obtaining $ 32,500 of profit, and there would be 10 hours of testing left over.