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You are the human resources manager for a famous retailer, and you are trying
to convince the president of the company to change the structure of employee
compensation. Currently, the company’s retail sales staff is paid a flat hourly
wage of $18 per hour for each eight-hour shift worked. You propose a new
pay structure whereby each salesperson in a store would be compensated $8
per hour, plus five-tenths of 1 percent of that store’s daily profits. Assume
that, when run efficiently, each store’s maximum daily profits are $40,000.
Outline the arguments that support your proposed plan.
Sonja Cc is a small firm that make outfits for customer tailored for their functions, in My 2021 she was ordered for a baby shower (BS)
The details for Job BS was as follows:
Direct materials: 12 units at N$124
Direct labour: 20 hours for department A at N$25 per hour
10 hours for department B at N$30 per hour
12 hours for department C at N$27.50 per hour
The firm allocates manufacturing overheads budgeted at N$2500 in department A, N$2000 in department B and N$3000 in department C.
The firm expects a profit of 55% on total cost BS
Required:
1.Calculate the cost of a baby shower BS
2.Calculate the selling price of a baby shower BS
3.If the number of outfits are the same for each type of function, which function should Sonja choose to produce and why.
Differentiate between product market and labour market (use diagrams that explain the interactions in the markets)
Lungameni Enterprises manufactures Product A selling it to the local customers at a mark up of 25%. They currently absorbs overhead costs on the basis of direct labour hours. Production volume for product A was estimated at 1000 units. Only 80% of production volume was achieved. Standard practice product A require 0.5 hours at an hourly rate of N$8.50. The 80% production volume produced at 45 minutes per unit and hourly rate of N$8.00. Raw materials are bought from local suppliers at N$3.50 per kilogram. Each unit require 1.5 kilograms. Two kilograms was used, monthly manufacturing overhead costs amounted to N$1200. The production manager view that manufacturing overhead cost be absorbed on basis of direct labour cost.
Required:
On the basis of gross profit / loss do we agree with Lungameni Enterprises production managers recommendation? show all the workings.
Due to substantial increases in prices in Country A, the real income level of the population in Country A decreases. Show on a diagram how the decrease in the income level in Country A will affect the demand for meat, which is a normal good. Also indicate how the equilibrium price and equilibrium quantity of meat will change in Country A. The direction of any changes should be clearly indicated using arrows. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram.
The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram
Indifference curve analysis is not much use because it only tell us that the demand curves slope down except when they don't. Discuss
A firm’s market power can be measured by its ability to raise price above marginal cost. Relative to the level of marginal cost, this measure is (P –MC)/MC. How do you expect this to be related to the elasticity of demand for the monopolist’s output?
A two-firm coal cartel that produces at a constant marginal cost of £22 faces a market inverse demand curve of P = 95 – 0.43Q. Initially, both firms agree to act like a monopolist, each producing 42.44 tonnes of coal. If one of the firms cheats on the agreement (assuming the other firm is compliant and continues to produce at 42.44 tonnes), how many tons of coal will the cheating firm produce?
Explain the 3 stages of production. Hint use graphs
