Rippey Ltd

question 34

Essay

Rippey Ltd. manufactures a single product with the following unit costs for 5,000 units: Recently, a company approached Rippey Ltd. about buying 1,000 units for £225. Currently, the models are sold to dealers for £412.50. Rippey's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.
Required:
a.
What is the profit earned by Rippey Ltd. on the original 5,000 units?
b.
Should Rippey accept the special order if its goal is to maximize short-run profits? How much will income be affected?
c.
Determine the minimum price Rippey would want to receive in order to increase profits by £7,500 on the special order.
d.
When making a special order decision, what nonquantitative aspects of the decision should Rippey Ltd. consider?

Recognize the conditions and reasons behind spontaneous abortion and the physiological consequences.

Identify strategies for preventing pregnancy and sexually transmitted diseases through barrier methods and hormonal contraceptives.

Understand the genetic implications of sexual and asexual reproduction.

Explain the hormonal control and processes of human reproductive systems.

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Definitions:

Labor Supply Curves

Graphical representations showing the relationship between the wage rate and the quantity of labor workers are willing to supply.

Mexican Workers

Individuals from Mexico who may work either in their home country or abroad, contributing to various sectors of the economy.

United States

A federal republic consisting of 50 states, a federal district, and several territories. It is located primarily in North America.

Labor Supply Curve

The graphical representation of the relationship between labor supplied and the wage rate in the market.