Fame company manufactures engines. fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: hydra international and parable company. both suppliers are reliable and rarely deliver late. hydra sells the component for $12.00 per unit, while parable sells the same component for $10.00. fame purchases 80% of its components from parable because of the lower price it offers. the total annual demand is 95,000 units. i. activity data activity cost inspecting components (sampling only) $ 210,000 reworking products (due to failed component) $2,454,000 warranty work (due to failed component) $1,923,000 ii. supplier data hydra parable international company unit purchase price $12.00 $10.00 units purchased 19,000 76,000 sampling hours 60 2,600 rework hours 150 3,800 warranty hours 550 7,000

calculate the activity rate for inspecting components based on sampling hours. (note: round answer to the nearest dollar.)

a.$72 per hour
b.$77 per hour
c.$79 per hour
d.$75 per hour
e.$80 per hour

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?

When immigration adds to the size of the domestic labor pool, which of the following is likely to occur? a. wages decrease. b. productivity increases. c. consumption decreases. d. minimum wage increases.