Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has two inputs: X and Y. The firm understands these inputs to be substitutable. The firm's standard mix is 2 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 2 unit(s) of input X for every 12 unit(s) of input B.

  • Input X costs $25 per unit
  • Input Y costs $6 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?

Please show work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Auditing Planning Implementation Use

Authors: Peter Wotschke, Gregor Kindermann

1st Edition

3658388404, 978-3658388409

More Books

Students also viewed these Accounting questions

Question

When consumers decide to purchase a particular product, they

Answered: 1 week ago