Home / Questions / Vargas Inc produces industrial machinery Vargas has a machining department and a group of ...
Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct laborers called machinists. Each machinist is paid $25,000 and can machine up to 500 units per year. Vargas also hires supervisors to develop machine specification plans and to over- see production within the machining department. Given the planning and supervisory work, a supervisor can oversee three machinists, at most. Vargas’s accounting and production history reveal the following relationships between units produced and the costs of direct labor and supervision (measured on an annual basis): Required: 1. Prepare two graphs: one that illustrates the relationship between direct labor cost and units produced, and one that illustrates the relationship between the cost of supervision and units produced. Let cost be the vertical axis and units produced the horizontal axis. 2. How would you classify each cost? Why? 3. Suppose that the normal range of activity is between 2,400 and 2,450 units and that the exact number of machinists is currently hired to support this level of activity. Further suppose that production for the next year is expected to increase by an additional 400 units. How much will the cost of direct labor increase (and how will this increase be realized)? Cost of supervision?
Apr 08 2020 Read more Less More
Consider a firm that produces beer and pretzels. It must sell a bag of pretzels for every four bottles of beer. If its profit function is p = 150B-4B2 +150P -3P2 +10BP +1...
Apr 09 2020The cost of raising capital through retained earnings is ________ the cost of raising capital through issuing new common stock. The current risk-free rate of return (r_RF...
Apr 10 2020Managers at all three levels of management require different kinds of skills to perform the functions associated with their jobs. A major difference in skill requiremen...
Nov 29 2017Consider the extrusion of a cylindrical billet, and compute the following.a. Assume the starting billet to have a length of 0.3 m and a diameter of 15 cm. This is extrude...
May 23 2020Th maximum um instantaneous extension, produced by an unknown falling weight through a height of 4 cm in a vertical bar of length 3m and of cross-sectional area 5 cm is 2...
Jul 06 2020If there are 10 job vacancies and 9 people unemployed then there exists A. only structural unemployment and the economy is at full employment. B. only frictional and cycl...
Jun 01 2020In September, 2008, the IRS changed tax laws to allow banks toutilize the tax loss carryforwards of banks they acquire to shieldtheir future income from taxes (prior law ...
Dec 03 2019EXPLAIN AND DETAILS RENEWABLE ENERGY SOURCES Q. Where do we get our electricity? Q. What is a Fossil Fuel? >
Jul 19 2020Bargeron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 13 percent, the cost...
Apr 14 2020balance the following interior angles (angles to the right) of a five-sided closed polygon traverse using method 1 of section 10.2. if the azimuth of side AB is fixed at ...
Jul 09 2020Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.