The income increase from replacing old machine with Machine A is $21,800.
What is an income?Income, which generally refers to an entity's capacity to save and consume money over a specific period of time, is expressed in monetary terms. Income is a difficult concept to define, and different sectors could have different definitions. According to tax law, income is a total that accounts for all wages, salaries, profits, interest payments, rent, and other types of earnings that families and individuals in the United States receive over the course of a year. Discretionary income is sometimes defined as gross income minus taxes and other deductions in order to compare the well-being of taxpayers. In the subject of public economics, the concept of consuming ability may include the accumulation of both monetary and non-monetary resources, with the latter serving as a proxy for total income.
New income= ($56,400 - $44,600 + $10,000)
= $21,800
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why does the way in which a market is defined, narrowly or broadly, make a difference in how antitrust policy is implemented?
A specific company is more likely to be dominant and to break antitrust laws if a market is defined narrowly.
How are antitrust regulations carried out in the US?The three main methods used to enforce federal antitrust statutes are as follows: by the Department of Justice's Antitrust Division in both criminal and civil enforcement actions. The Federal Trade Commission has taken civil enforcement actions. private parties filing lawsuits alleging damage claims
What exactly is an antitrust law?In essence, these laws forbid commercial activities that unfairly deprive consumers of the advantages of competition and lead to increased costs for goods and services. The three principal Federal antitrust statutes are as follows: Antitrust Sherman Act.
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which of the following will result in a decrease to net cash from investing activities? (check all that apply.)
Purchasing shares of stock of another company. Purchasing and selling noncurrent assets and investments are among the investing cash flow activities.
How Do Noncurrent Assets Work?
Noncurrent Assets are long-term investments made by a corporation that won't be fully realized within the accounting year. Since they are frequently quite illiquid, these assets cannot be quickly changed into cash. Investments, intellectual property, real land, and equipment are a few examples of noncurrent assets. The balance sheet of a firm includes noncurrent assets.
On a company's balance sheet, assets are separated into two groups: noncurrent assets and current assets. Long-term assets, often known as noncurrent assets, are capitalized as opposed to expensed. This implies that instead of allocating the whole cost to the accounting year in which the asset was acquired, the corporation allocates the cost of the item across the years for which it would be used. An asset may be depleted, amortized, or both depending on its kind.
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The clothing lines created by edwin and faeh were tailored to appeal to european tastes. What approach does this represent according to the integrative-responsiveness framework?
The clothing lines created by Edwin and faith were tailored to appeal to European tastes.
What are clothing lines?Generally, A collection of garments that are marketed at a certain group of consumers and made available for purchase in brick-and-mortar or online boutiques is known as a clothing line.
Clothing and "outfitting," which refers to the equipment and accessories that are worn or carried for the purpose of function or adornment, are both included in the term "apparel," which derives from the verb "to wear." Clothing is the "cloth" that is worn as part of clothing for the purpose of protecting the body or maintaining modesty. +1.
A clothing Brand is defined as an Identification of the Manufacturer that is primarily used in the business of manufacturing, providing, distributing, and selling clothes and which meets the following criteria:
I it is not primarily used for products other than clothing; (ii) it is not confusingly similar to or identical to an identification that is used in another line of business.
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the trading of futures contracts in major currencies and offering price transparency and efficiency in addition to elimination of counterparty risk due to guaranteed payments on contracts is called .
Trading of futures contracts in major currencies and offering price transparency and efficiency in addition to elimination of counterparty risk due to guaranteed payments on contracts is called Organized exchange.
Organized exchange is securities marketplace where purchasers and sellers regularly gather to trade securities by following the set norms adopted by the exchange.
Organized stock exchanges are used by the companies to raise capital and investors to make informed decisions using real-time price information. Their can be many platform for organized Exchanges like physical location or an electronic trading platform.
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how is mutual accountability fostered? multiple choice individuals take ownership of information. managers have knowledge related to the work. supervisors have discretion over resources used. team leaders have authority over how goals are met. team members share accountability for the work.
Mutual accountability is fostered when team members share accountability for the work. This means that everyone on the team takes responsibility for the success or failure of the project.
How is mutual accountability fostered?Mutual accountability is fostered when team members share accountability for the work. This means that everyone on the team takes responsibility for the success or failure of the project. They understand their individual roles and the importance of their contributions, and they work together to ensure that their collective efforts result in success. This encourages a sense of collaboration and trust within the team, which leads to better communication and problem solving.
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The cash flow statement should be evaluated by examining the cash flow pattern ______.
The cash flow statement should be evaluated by examining the cash flow pattern of the subtotals for the three sections of the statement.
What is cash flow statement?⇒The phrase "cash flow statement" is typically used to represent payments that are anticipated to occur in the future, are hence uncertain, and as a result need to be projected with cash flows. A cash flow in its restricted sense is a payment (in a currency), primarily from one central bank account to another. However, it is common to use the term "cash flow" in a broader meaning to describe (symbolic) payments into or out of a company, project, or financial product. Value, interest rate, and liquidity are only loosely correlated with cash flows. Funds flow is crucial, particularly for the inflow and outflow of cash within the company. It hides the current operating results and related adjustments to the balance sheet or statement of financial status.
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the sales process begins with the salesperson locating companies or people who are most likely to buy the seller's offerings. this activity is called:
Finding businesses or individuals who are most inclined to buy the vendor's offerings is known as prospecting, which is the first step in the sales process.
What exactly does it mean to prospect?The first stage in the selling process is prospecting, which entails locating potential clients, also known as prospects. The aim of prospecting is to create a database of potential consumers, then communicate with them in a methodical manner in the hopes of turning them from potential customers to present customers.
Is marketing the same as prospecting?Prospecting is the key to closing the deal and keeping your clients satisfied moving forward, whereas marketing can shorten the sales cycle or even direct you to new prospects. Make sure the marketing initiatives will complement your business when you start to think about it.
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land is privately owned under the: select one: a. feudal system b. allodial system c. fee simple system d. market data system
Land is privately owned under the: b. Allodial system.
What is the Allodial System?In various legal systems around the world, the allodial system is a claim to legal ownership of land. The common law simple is used by the majority of states in the union, enabling fee simple property ownership.
When the US proclaimed its independence from England, allodial title was first used. With the concept of allodial title, the owner and protector of the land may assert legal ownership rights. The allodial title that falls under a state's purview is mentioned in many state constitutions.
The main purpose of this is to set the property system apart from the feudal system. Common law generally establishes ownership rights, with allodial systems having the potential to assert secondary rights.
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Widespread reductions in economic regulation of US transportation carriers occurred in ____.
a. 1960s and 1970s
b. 1970s and 1980s
c. 1980s and 1990s
d. only the 1990sb. 1970s and 1980s
The correct answer is widespread reductions in economic regulation of US transportation carriers occurred in 1970s and 1980s.
In order to control and alter economic behaviour, governments typically impose legislation on people and private sector businesses.
The interests of persons who use public services, commercial practices (such as maximizing profit), market failure, and the interests of those not directly participating in transactions can all clash (externalities).
Therefore, most countries have some sort of legislation or oversight to handle these potential conflicts.
Economic regulation should aim to assure the provision of a safe and adequate service while not impeding on the efficient operation and growth of firms.
For instance, regulation governs the sale and use of alcohol and prescription medications in the majority of nations, as well as the food industry, the provision of personal or residential care, public transportation, building, film and television, etc.
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suppose that a pound of copper costs $4 in the united states and costs 120 pesos in mexico. if the nominal exchange rate is 20 pesos per dollar, the real exchange rate is
The real exchange rate is=[tex]2480[/tex]
Exchange rate=nominal exchange rate*foreign-currency price of the same good in the foreign country
[tex]=20*120+4=2480[/tex]
In the world of finance, the exchange rate is the rate at which one currency will be exchanged for another. The majority of the time, currencies are national, but they can also be supra- or sub-national, as the Hong Kong dollar or the euro. Each country selects the system of exchange rates that will be applied to its particular currency. For instance, a currency may be hybrid, fixed, or floating. Governments have the power to impose limitations and restrictions on exchange rates. A country's currency may be robust or fragile. The economic literature is divided on the ideal national exchange rate. Instead, national exchange rate regimes are an expression of political variables.
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what tools can a project manager use to account for issues that may cause a project delay? select all that apply.
Task buffer and Project buffer are the tools that can be used by a project manager to account for issues that may cause a project delay.
A tool is an item that can increase a person's capacity to change aspects of their immediate surroundings or assist them in carrying out a certain activity. Despite the fact that many animals utilize basic tools, only humans, whose usage of stone tools extends back hundreds of thousands of years, have been seen making tools from other tools.
Early humans prepared food, hunted, produced weapons, worked with materials to create clothes and useful items, and all of this was done with the use of stone, bone, and wood tools. Additional sorts of tools become feasible with the advancement of metalworking.
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triangle enterprises has both debt and equity, and it can borrow at 9 percent. the firm's wacc is currently 14.7 percent, and there is no corporate tax. if the firm has 70 percent debt, what will its cost of equity be?
Triangle enterprises has both debt and equity, and it can borrow at 9 percent. the firm's wacc is currently 14.7 percent, and there is no corporate tax. if the firm has 70 percent debt, its cost of equity will be 24.47 %.
The return a company theoretically gives to its equity investors, or shareholders, to make up for the risk they assume by investing their money, is known in finance as the cost of equity. For a business to function and expand, it needs funding from other sources. Those individuals and organizations who are willing to offer money to others naturally desire payment. Just as landlords want rent for their homes, capital providers seek returns on their investments that must be proportional to the level of risk involved. Lenders and equity investors are the two main types of cash sources for businesses. Lenders want to be compensated with interest, while equity investors want dividends and/or an increase in the value of their investment, from the standpoint of those who give capital.
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____ are considered an important feature of smartphones due to the convenience and cost savings they offer to consumers.
Goo-gle Analytics are considered an important feature of smartphones due to the convenience and cost savings they offer to consumers. Both speed and storage space.
Modern midrange business cellphones don't require you to choose between speed and cost. However, you will require a smartphone with sufficient processing power to operate all of your mission-critical business apps. Your employees' smartphones devices may enable them to multitask more consumers while on the go if they have enough RAM. In addition to being able to send messages, emails, and make calls, you also have access to the entire range of the computer features.
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On January 1 of this year, Diaz Boutique pays $180,000 to modernize its store. Improvements include new floors, ceilings, wiring, and wall coverings. These improvements are estimated to yield benefits for 8 years. Diaz leases (does not own) its store and has 5 years remaining on the lease. 1. & 2. Prepare the journal entry to record the cost of modernization and amortization at the end of this current year.
If on January 1 of this year, Diaz Boutique pays $180,000 to modernize its store. the journal entry to record the cost of modernization and amortization at the end of this current year is: Debit Leasehold Improvements $180,000,Credit Cash $180,000.
How to prepare the journal entry?Jan 1
Debit Leasehold Improvements $180,000
Credit Cash $180,000
(To record cost of modernization)
Dec 31
Debit Amortization expense - Leasehold improvements $36,000
Accumulated amortization - Leasehold improvements $36,000
($180,000 /5 years)
(To record cost of amortization)
Therefore the journal entry to record cost of modernization is Debit Leasehold Improvements $180,000,Credit Cash $180,000.
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what can happen when a government continues to use expansionary fiscal policy even as government debt becomes a problem?
Real growth can continue to fall when a government continues to use expansionary fiscal policy even as government debt becomes a problem
The general government sector's gross debt, which is comprised of liabilities and debt instruments, is the standard unit of measurement for government debt. A debt instrument is a monetary claim that calls for future interest and/or principal payments from the debtor to the creditor. Examples include loans, debt instruments (such as bonds and bills), and liabilities relating to government employee pensions.
The national debt is comparable, in essence, to someone making purchases with a credit card and not paying the full balance each month. A deficit is the difference between the cost of purchases and the amount paid off; cumulative deficits over time constitute an individual's total debt.
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question content area top part 1 dynamic software, inc. invests excess cash of $100,000 in corporate bonds on march 30, 2025. the bonds mature 20 years from the date of purchase. dynamic plans to hold the bonds until maturity and has the ability to do so. how does the march 30, 2025 transaction affect the accounting equation?
Total assets will remain unchanged by this the march 30, 2025 transaction affect the accounting equation.
An asset is anything that has current or future economic value to an enterprise. Essentially, business assets include anything that a business controls and owns that has the potential to generate present value or future economic profit. Examples include patents, machines, and investments.
A business asset is an item of value owned by a company. Business assets fall into many categories. This includes physical and tangible items such as vehicles, real estate, computers, office furniture, and other equipment, or intangible items such as intellectual property.
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john, your group’s informal leader, doesn’t trust alicia, the group’s communications manager. john feels alicia tends to overemphasize her own beliefs in group documents, and alicia believes john is micromanaging the team. this is a classic case of .
As John feels alicia tends to overemphasize her own beliefs in group documents and alicia believes john is micromanaging the team, this is a classic case of a personality clash.
What is a personality clash?Basically, a personality clash refers to an occurrences when two (or more) people find themselves in conflict not over a particular issue or incident but due to a fundamental incompatibility in their personalities, their approaches to things or their style of life.
Most time, a personality clash does occur in work-related, school-related, family-related, or social situations.
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Fixed Asset Purchases with Note On June 30, Collins Management Company purchased land for $320,000 and a building for $480,000, paying $400,000 cash and issuing a 7% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $20,000 on the principal plus the interest accrued from the date of the preceding payment. If an amount box does not require an entry, leave it blank. a. Journalize the entry to record the transaction on June 30. June 30 Building 480,000 Land 320,000 Notes Payable 400,000 Cash 400,000 b. Journalize the entry to record the payment of the first installment on December 31. 20,000 Dec. 31 Notes Payable Interest Expense Cash C. Journalize the entry to record the payment of the second installment the following June 30. June 30 Notes Payable Interest Expense Cash
a
June 30 Building 480000
Land 320000
Notes Payable 400000
Cash 400000
b
Dec 31 Notes Payable 20000
Interest expense 14000 =400000*7%*6/12
Cash 34000
c
June 30 Notes Payable 20000
Interest expense 13300 =(400000-20000)*7%*6/12
Cash 33300
An price is an item requiring an outflow of money, or any shape of fortune in wellknown, to another man or woman or group as payment for an item, carrier, or other class of expenses. For a tenant, rent is an rate. for college kids or parents, tuition is an fee. shopping for food, garb, furniture, or an vehicle is regularly known as an expense. An cost is a value that is "paid" or "remitted", normally in trade for some thing of fee. some thing that appears to fee a wonderful deal is "high priced". something that seems to price little is "less expensive". "fees of the desk" are fees for eating, refreshments, a feast, and so forth.
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a perfectly competitive firm sells its product for $ 10 $10, and at its current output, average variable cost is $ 7 $7, average total cost is $ 12 $12 and marginal cost is $ 10 $10. in the short run, this firm should
The short/brief run is a thought that states that, inside a positive period in the future, at least one input is fixed whilst others are variable. In economics, it expresses the thought that an economy behaves otherwise relying on the size of time it has to react to sure stimuli.
What is quick run manufacturing example?An instance of a quick run can be a company, ABC, which is able to produce 10 vehicles in a day and looks to produce more motors (15 motors per day) via the usage of the available infrastructure due to growing demand in the course of the season.
Short-term manufacturing and long-run manufacturing each involve the use of input factors. In temporary production, at least one of the elements is fixed. In long-term production none of the factors are factors. Instead, long-term production uses variable variables that can fluctuate or change.
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https://brainly.com/question/24088447#SPJ4The Beatles Co. began construction of a recording studio on January 1, 2020 and completed the studio on October 31, 2021. The details on the expenditures relating to the project were as follows: January 1, 2020 March 31, 2020 October 1, 2020 February 1, 2021 April 30, 2021 $ 1,400,000 2,700,000 900,000 1,800,000 1,500,000 The company provided the following information on its various debts outstanding during the entire period of the construction: 12%, ten-year note issued on December 31, 2012 1,000,000 9%, five-year bank loan taken on January 1, 2019 2,000,000 The capitalzied cost of the recording studio on Beatles' balance sheet after October 31, 2021 was: Multiple Choice $8,665,000. O $9,453,500. $8,300,000. O $8,900,000. The Beatles Co. began construction of a recording studio on January 1, 2020 and completed the studio on October 31, 2021. The details on the expenditures relating to the project were as follows: January 1, 2020 March 31, 2020 October 1, 2020 February 1, 2021 April 30, 2021 $ 1,400,000 2,700,000 900,000 1,800,000 1,500,000 The company provided the following information on its various debts outstanding during the entire period of the construction: 12%, ten-year note issued on December 31, 2012 $1,000,000 9%, five-year bank loan taken on January 1, 2019 $2,000,000 Beatles' capitalzied interest in 2020 was: Multiple Choice $438,000. O $387,500. o $300,000 $365,000
B) The capitalized cost of the recording studio on the Beatles' balance sheet after October 31, 2021 was $9,453,500.
Calculate the total cost of the recording studio:
1,400,000 + 2,700,000 + 900,000 + 1,800,000 + 1,500,000 = 8,300,000
Calculate the interest on the debts outstanding during the entire period of construction:
12%, ten-year note issued on December 31, 2012:
Interest = Principal x Rate x Time = 1,000,000 x 0.12 x 3 = 360,000
9%, five-year bank loan taken on January 1, 2019:
Interest = Principal x Rate x Time = 2,000,000 x 0.09 x 4 = 720,000
Calculate the capitalized cost of the recording studio:
Capitalized Cost = Total Cost of Recording Studio + Interest on Debts Outstanding
= 8,300,000 + (360,000 + 720,000)
= 8,300,000 + 1,080,000
= 9,453,500
Therefore, the capitalized cost of the recording studio on Beatles' balance sheet after October 31, 2021 was $9,453,500.
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the stock of supergro inc. is expected to grow at an annual rate of 28% for the next 2 years, after which growth will return to the normal constant growth rate of 8%. if the last dividend paid (that is, d0) was $2.00 and the required rate of return on stocks of this risk class is 16%, what is the price of the stock today?
The price of the stock of Supergro inc. today is $37.52
The dividend discount model is based on the idea that the intrinsic value of a stock is derived from its stream of future dividends. Accordingly, the model prices a stock to the present value of future dividends discounted at the required return on the stock.
According to the dividend discount model, the price of the stock is discounted present value of future dividends. The dividend for the next two years is:
year 1: 2*(1 + 28%) = 2.56
year 2: 2.56 * (1 + 28%) = 3.28
After year 2, the dividend grows at a constant rate of 8%. Given a discount rate of 16%, the present value of future dividends is:
[tex]\displaystyle \frac{2.56}{(1 + 16\%)} + \frac{3.28}{(1 + 16\%)^2} + \sum_{t=3}^{\infty}{\frac{3.28*(1 + 8\%)^{t-2}}{(1 + 16\%)^t}}\\ = \displaystyle 2.21 + 2.44 + \frac{3.28*(1 + 8\%)}{(16\% - 8\%)(1 + 16\%)^2}\\ = 4.65 + 32.87\\ = 37.52[/tex]
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an educational description when the primary channel of learning is through tactile and auditory means.
An educational description when the primary channel of learning is through tactile and auditory means functionally blind.
A person is functionally blind when they have to use so many alternative technologies to perform tasks that are normally performed visually that the patterns of their daily lives change significantly. A cataract is a clouding of the normally clear lens.
For people with cataracts looking through a fogged lens is a bit like looking through ice or a fogged window. Astigmatism is an irregularly shaped cornea or lens that prevents light from being properly focused on the retina, the light-sensitive surface at the back of the eye. The surface of the cornea is shaped more like a soccer ball than a round basketball and the eye cannot focus light rays to a single point.
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The objective of aggregate planning is to meet forecast demand while ________ over the planning period.
Generally, the goal of aggregate planning is to satisfy anticipated demand while balancing employment and reducing inventory levels over the planning period.
What is aggregate planning?Aggregate planning is a marketing activity that creates a manufacturing process plan in advance of 6 to 18 months to provide management a general sense of how much inventory and other resources will need to be purchased and when, hence lowering the organization's overall operating costs during that time. The amount of outsourcing, subcontracting, overtime work, hiring and firing personnel for each period, and the quantity of inventory to be kept on hand and backlogged for each period are all determined. These actions are all carried out in accordance with the company's ethics, policies, and long-term commitment to the local community, society, and operating nation.
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A company has just finished brainstorming around fifty names for its new product line. What are the next two steps it needs to take in the name development process?.
The next two steps it needs to take in the name development process are screen out problematic names and check for domain and social media availability.
What does brainstorming entail?Participants are urged to think freely during a brainstorming session, which is a technique for creating ideas and exchanging expertise to address a specific business or technical challenge. As ideas come to mind, each person in a group participating in brainstorming immediately shares them.
Why should we use brainstorming?People can think more freely and fearlessly when brainstorming. In order to solve issues and produce original ideas, brainstorming promotes transparent and continuous collaboration. Teams may quickly develop a lot of ideas through brainstorming, which can then be combined and improved to come up with the perfect answer.
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the prisoners' dilemma provides insights into the a. benefits of government ownership of monopoly. b. difficulty of maintaining cooperation. c. benefits of avoiding cooperation. d. ease with which oligopoly firms maintain high prices
The prisoners' dilemma provides insights into the difficulty of maintaining cooperation.
The prisoner's dilemma is a scenario in which two parties that are cut off from one another and unable to communicate must decide whether or not to cooperate. When both sides decide to work together, everyone benefits the most.
According to game theory, a scenario known as a prisoner's dilemma occurs when two selfish players are forced to make a decision that is not in their best interests. The prisoner's dilemma also demonstrates that simple collaboration is not always advantageous.
In the scientific literature, The Prisoner's Dilemma (PD) is one of the most well-known ideas. By offering participants the option to defect or cooperate in a particular social environment or issue, the task is used to explore various sorts of social interactions.
Hence the correct option is B
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on march 1st, jones corporation purchased 1,000 shares of previously issued common stock, paying $2 per share. what is the journal entry to record the purchase?
journal entry to record the purchase is $500 on 1,000 shares of previously issued common stock.
What Do Stocks Mean?A stock, often known as equity, is a financial instrument that indicates ownership of a share of the issuing corporation. In accordance with the number of shares they own, owners of shares, which are units of stock, are entitled to a portion of the company's assets and revenue. Stocks are typically bought and sold on stock exchanges, where they form the core of the portfolios of many individual investors. When trading stocks, one must abide by laws designed to protect investors from deceptive practices.
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to produce smooth movement at a joint a. the antagonist and synergists must contract b. the prime mover and antagonists must contract c. both a and b above d. the prime mover and synergists must contract
To produce smooth movement at a joint the prime mover and synergists must contract
The main muscle participating in an activity is referred to as the prime mover, or agonist, even if several muscles may be involved in the movement. A muscle called the biceps brachii is really the primary mover during forearm flexion (bending the elbow), such as when raising a cup. However, because the brachialis may help this movement, it is known to be a synergist.
In between two bones are joints, which may move. A joint cavity, a joint capsule, and the surfaces of the associated bones make up each joint. A layer of cartilage covers the bone surfaces that are involved in joints (articular surfaces). Up to 6 mm thick at the kneecap, this layer has a thickness of between 0.2 and 0.5 mm.
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a manufacturer is contemplating a switch from buying to producing a certain item. setup cost would be the same as ordering cost. the production rate would be about double the usage rate. compared to the eoq, the maximum inventory would be approximately:
A manufacturer is someone who uses a variety of tools, equipment, and processes to produce a finished product from raw materials and sells the goods to consumers, wholesalers, distributors, retailers, or those who manufacture new products from raw materials. A person or company that sells to other manufacturers. material or component.
Manufacturers of Complex Goods Manufacturers are companies involved in the production of finished goods from raw materials. A manufacturer can be either an individual or a registered company. Traditionally, he initiates the supply chain for all products and distributes them to wholesalers or retailers as the case may be.
Manufacturing activities include making new products from raw materials or by assembling various components by physical, chemical or mechanical means. Manufacturing items such as phones, cars, computers, and food and beverages can be done on a large scale.
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who is responsible for the implementation of the plan during a consultation process? group of answer choices the consultant the consultee the employees another consultant
Employee is responsible for the implementation of the plan during a consultation process.
When an employer talks to and listens to employees, workers, and any applicable employee representatives about organizational issues and changes that affect them, this is referred to as consultation process.. Working together to agree on a change or discover a solution to a problem is the goal of consultation. Employers may make a well-informed, successful decision by taking into account the opinions, worries, and challenges of their employees and having a plan in place to solve them. This can be done by listening to what they have to say and that of their representatives. A generic term like "consultation" can refer to a variety of distinct things. Find out which kind of consultation would be appropriate for your circumstance so that you can make sure you're going through the proper steps.
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Customers: Los Angeles, Chicago, and Philadelphia
Cars are produced at plants, then shipped to wareho
uses, and finally shipped to
customers. Detroit can produce 150 cars per week an
d Atlanta can produce 100 cars per
week. Los Angeles requires 80 cars per week; Chicag
o, 70; and Philadelphia, 60. It costs
$10,000 to produce a car at each plant, and the cos
t of shipping a car between two cities
is given in the following table. Determine how to m
eet General Ford’s weekly demands
at minimum cost.
The required capacity for our warehouses are: Denver 80 cars, New York 130 cars.
This approach will require $10,000 in shipping expenses overall per week. A total of $10,000 would be spent each week on manufacture and delivery (200 automobiles would be created at a cost of $10,000 apiece + $10,000for shipping). With this strategy, all of the product produced in Detroit will be delivered to warehouses, satisfying client demand in all three cities. Atlanta will have 40 automobiles in the warehouse that are surplus to requirements if production is at the desired rate of 100 cars per week. Finding new consumers for the additional 40 cars is preferable to producing only 60 cars in Atlanta.
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