Answer:
a. Any of the techniques can be used but technique 2 has lowest production cost , then it is the one that should be used
Technique 2 should still be used, the lowest production cost give the largest profit
Technique 2 should still be used, as we said before the lowest production cost give the largest profit
b. There is no way for sales to meet or beat production costs. Changes would have to be made to production
Explanation:
* Lets explain how to solve the problem
- There are three techniques in the table
# 1st technique cost $15 for 7 units
# 2nd technique cost $13 for 7 units
# 3rd technique cost $15 for 8 units
- Assume that we said “$17.50 worth of bar soap” because soap
costs $3.50 per bar ($17.50 = $3.50 per bar x 5 bars)
- All three techniques produce 5 bars of soap
a.
∵ The price of a bar is $3.25
∵ There are 5 bars
∴ The price of them = 5 × 3.25 = $16.25
- Look to the table and compare this price by the 3 techniques
∵ The price is greater than the three techniques
∴ Any of the techniques can be used but technique 2 has lowest
production cost , then it is the one that should be used
∵ The price of a bar is $4.75
∵ There are 5 bars
∴ The price of them = 5 × 4.75 = $23.75
- Look to the table and compare this price by the 3 techniques
∵ The price is greater than the three techniques
∴ Technique 2 should still be used, the lowest production cost give
the largest profit
∵ The price of a bar is $5.75
∵ There are 5 bars
∴ The price of them = 5 × 5.75 = $28.75
- Look to the table and compare this price by the 3 techniques
∵ The price is greater than the three techniques
∴ Technique 2 should still be used, as we said before the lowest
production cost give the largest profit
b.
∵ The price of a bar of soap falls to $2.45
∵ The lowest cost production is $13 to make 5 bars
- We should to earn more than $13
∵ 5 × 2.45 = $12.25 ⇒ cost $13
∵ 10 × 2.45 = $25.5 ⇒ cost $26
∵ 15 × 2.45 = 36.75 ⇒ cost $39
∴ There is no way for sales to meet or beat production costs.
Changes would have to be made to production