Examlex

Solved

A Company Manufactures Computer Parts

question 36

Essay

A company manufactures computer parts.They have received an order for 100 custom disc drives.It is estimated that the first drive will take 20 hours of shop time and an 80% learning curve is expected.The labor rate is $15.00 and the pricing policy is to charge 3 times the labor cost.
a.How many hours will the 100th disc drive take?
b.How many hours will the entire order take?
c.What is the price of the entire order?
d.What is the price per unit?


Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a goods or services and the quantity demanded.

Substitutes

Products or services that can be used in place of each other, satisfying the same needs or wants of the consumer.

Monopolist

A single seller in a market who has significant control over the entire supply of a good or service, and thus can influence price.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Related Questions