A Total of 160 Hours of Labor Are Available Each

question 17

Essay

A total of 160 hours of labor are available each week at $15 per hour.Additional labor can be purchased at $25 per hour.Capital can be purchased in unlimited quantities at a cost of $45 per unit.If K units of capital and L units of labor are available during a week,then machines can be produced.Each machine sells for $270.How can the firm maximize its weekly profit?

---

Definitions:

Days' Sales Uncollected

Days' sales uncollected is a financial metric that estimates the average number of days it takes for a company to collect payments from its credit sales, reflecting on the efficiency of its credit and collection policies.

Receivables

Amounts owed to a company by its customers for goods or services provided on credit.

Internal Control

Strategies and systems put in place by an organization to maintain the reliability of its financial and accounting data, encourage responsible behavior, and deter deceitful practices.

Invoice Approval

The process of reviewing and verifying invoices from suppliers before payment is made, to ensure that the charges are correct and services or goods were received.