A restaurant consumes wine at the rate of 50 bottles per day. Wine is purchased by the case and there are 13 bottles per case. The current ordering policy generates a total annual holding cost of $5020 and a total annual ordering cost of $3000. Next week the restaurant will switch from the current policy of purchasing 10 cases of wine in each order to purchasing wine based on the optimal FOQ. Which of the following will be a result of this switch in policy? a. Less than 10 cases of wine will be bought at a single time.
b. Total annual holding costs will increase.
c. Total annual inventory costs will increase.
d. Total annual ordering costs will decrease.
e. Both b) and d) will be results of this switch in policy.

Suppose a ceiling fan manufacturer has the total cost function c(x) = 48x + 1485 and the total revenue function r(x) = 75x. (a) what is the equation of the profit function p(x) for this commodity? p(x) = (b) what is the profit on 35 units? p(35) = interpret your result. the total costs are less than the revenue. the total costs are more than the revenue. the total costs are exactly the same as the revenue. (c) how many fans must be sold to avoid losing money? fans

Eileen's elegant earrings produces pairs of earrings for its mail order catalogue business. each pair is shipped in a separate box. she rents a small room for $150 a week in the downtown business district that serves as her factory. she can hire workers for $275 a week. there are no implicit costs. what is the marginal product of the second worker?

Aquatic marine stores company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. aquatic uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 3 pounds per unit; $ 6 per pound direct labor: 4 hours per unit; $ 19 per hour during the first quarter, aquatic produced 5 comma 000 units of this product. actual direct materials and direct labor costs were $ 65 comma 000 and $ 330 comma 000, respectively. for the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5 comma 000 units.