Suppose the current level of output is 5000. If the elasticities of output with respect to capital and
labor are 0.3 and 0.7, respectively, a 10% increase in capital combined with a 5% increase in labor
and a 5% increase in productivity would increase the current level of output to

(a) 5015.
(b) 5325.
(c) 5575.
(d) 6000.

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. this increased level of is leading to increased emphasis on management.

Mystic bottling company bottles popular beverages in the bottling department. the beverages are produced by blending concentrate with water and sugar. the concentrate is purchased from a concentrate producer. the concentrate producer sets higher prices for the more popular concentrate flavors. a simplified bottling department cost of production report separating the cost of bottling the four flavors follows: