Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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Question
QUESTION 1: Calculate a plant's total cost for every day in the data, in dollars. Total cost is defined as: total_cost = total_raw_materials_cost + total_operating_cost + total_labor_cost.
- Which plant is the most expensive to operate, and what is the cost to operate the plant?
QUESTION 2: Which cost source (or combination of sources) makes up the majority of a plants total expenditures?
- raw material, labor, operating, or no cost is consistently the majority of total cost across plants
QUESTION 3: Calculate cost efficiency, defined as how much money is spent to produce 1 pound of release ease (i.e. total production/cost).
- Which plant is the least cost efficient, in lbs of release ease produced per dollar spent?
- What is the daily average efficiency for the plant that is most efficient?
link to excel data:https://docs.google.com/spreadsheets/d/1PM9rh2DnEdKQqCjJM1cmVjcP7_YSdA0y/edit?usp=sharing&ouid=109691244462343090665&rtpof=true&sd=true
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