Question

Monday, 11 July, 11:59 PM Course event 1) Computer parts cost to make each computer is $200 2) The computers are made by assembly worker who get paid $25 for each computer 3) Utility cost for making each computer is $5 per machine hour, 2 machine hour per computer 4) If the business have had purchased a new machine, the benefit should have been $15,000 more than current one Rent expenses of the computer factory Machine equipment depreciation for computer factory Sales manager's monthly salary $3500 Sales department copier machine depreciation $2,000 per year 9) Sales person get paid $35 each computer based on the number of computer sold Please use the note format to complete the assignment 52L MGMT 5016 --- Data and Financial Management in Supply Chains 5) (6) 7) 8)

Answer 1

The total costs for producing computers include fixed costs, marginal costs for each unit, and additional expenses like assembly labor, utility costs, and sales personnel wages. Marginal costs vary for each computer, starting at $700 for the first unit.

Step-by-step explanation:

To calculate the overall costs of producing computers by a company, various factors need to be considered. Fixed costs remain constant regardless of output, which in this case, is $250. The cost to produce each computer includes materials, assembly labor, and utility costs, along with any additional expenses, such as machine depreciation or rent. On top of this, sales personnel costs vary depending on the number of units sold. The marginal cost reflects the cost to produce one additional unit, which in this scenario varies per computer produced, starting at $700 for the first computer and increasing thereafter.

• Fixed costs: $250
• Cost to make each computer: $200
• Assembly labor per computer: $25
• Utility cost per machine hour: $5
• Machine hours per computer: 2
• Marginal costs for seven computers: $700, $250, $300, $350, $400, $450, $500 respectively
• Rent, equipment depreciation, and sales personnel costs are additional expenses that also contribute to the overall cost

Answer 2

An affordable computer company with fixed costs of $250 faces increasing marginal costs for each additional unit produced. Production incurs direct labor and machine costs, such as $90 for workers and $80 for machines in example C, all contributing to the total cost of production.

Step-by-step explanation:

To calculate the total cost of producing computers, we need to consider various aspects of production, including labor, materials, machine costs, and other expenditures. A company that produces affordable, easy-to-use home computer systems encounters both fixed and variable costs.

The fixed costs are $250, which are costs that do not change regardless of the number of units produced. Then, we add the marginal costs, which vary depending on the production quantity: $700 for the first computer, $250 for the second, and so on. As production scales up, the marginal cost tends to increase.

Other direct costs expressed are the workers' and machines' rates. For example, in C, workers cost $90 per unit, and machines cost $80 per unit, amounting to $170 per unit collectively.

Examples of Computing Costs:

• Cost of Technology 1: 10 × $55 = $550
• Cost of Technology 2: Calculations will vary based on units produced
• Cost of Technology 3: For 7 units, 7 × $40 = $280 and for 3 units, 3 × $40 = $120

These calculations provide a base from which the company can determine the pricing needed to cover costs and generate profit.