Maurice Tutor

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About Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 11 Feb 2018 My Price 7.00

Modern Merchandise, Inc.

ST8.1 Learning Curves. Modern Merchandise, Inc., makes and markets do-it-yourself hardware, housewares, and industrial products. The company’s new Aperture Miniblind is winning cus- tomers by virtue of its high quality and quick order turnaround time. The product also benefits because its price point bridges the gap between ready-made vinyl blinds and their high-priced custom counterpart. In addition, the company’s expanding product line is sure to benefit from cross-selling across different lines. Given the success of the Aperture Miniblind product, Modern Merchandise plans to open a new production facility near Beaufort, South Carolina. Based on information provided by its chief financial officer, the company estimates fixed costs for this product of $50,000 per year and average variable costs of

 

AVC  =  $0.5  +  $0.0025Q

 

where AVC is average variable cost (in dollars) and Q is output.

A.   Estimate total cost and average total cost for the projected first-year volume of 20,000 units.

B.    An increase in worker productivity because of greater experience or learning during the course of the year resulted in a substantial cost saving for the company. Estimate the effect of learning on average total cost if actual second-year total cost was $848,000 at an actual volume of 20,000 units.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Feb 2018 09:02 PM My Price 7.00

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