Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 15.50 $ 11.40 $ 12.20 $ 11.80 Direct labor 20.60 28.60 34.80 41.60 Variable manufacturing overhead 5.50 3.90 3.80 4.40 Fixed manufacturing overhead 27.70 36.00 27.80 38.40 Unit product cost $ 69.30 $ 79.90 $ 78.60 $ 96.20 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 5.00 6.50 5.50 4.60 Selling price per unit $ 77.30 $ 94.70 $ 88.60 $ 105.40 Variable selling cost per unit $ 3.40 $ 2.40 $ 4.50 $ 2.80 Monthly demand in units 5,200 5,200 4,200 3,200 The grinding machines are potentially the constraint in the production facility. A total of 54,800 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x, y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.

All of the following led to the collapse of the soviet economy except a. a lack of worker incentives. c. inadequate supply of consumer goods. b. a reliance on production quotas. d. the introduction of a market economy.