Question
A firm has two inputs: X and Y. The firm understands these inputs to be substitutable. The firm's standard mix is 3 unit(s) of input
A firm has two inputs: X and Y. The firm understands these inputs to be substitutable. The firm's standard mix is 3 unit(s) of input X for every 12 unit(s) of input Y.
Input X costs $23 per unit
Input Y costs $8 per unit
The firm's actually used 4,000 total input units, with 1,000 units of input X and 3,000 units of input Y.
What is the firm's mix variance for these inputs?
NOTE: only input a number, without indicating favorability. For simplicity, the correct variance calculation will lead to a non-negative number. Just input that number, rounding the final answer to cents.
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