Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the per-unit opportunity cost of producing Widgets at each facility. That is, find the implied# of Doohickeys given up foreach 1 individual Widget produced

Calculate the per-unit opportunity cost of producing Widgets at each facility. That is, find the implied# of Doohickeys given up foreach 1 individual Widget produced at that facility.

Your company owns 3 production facilities in Louisiana, located in Alexandria (A), Baton Rouge (B), and Chalmette (C).Each facility produces either doohickeys (D),thingamajigs (T),and widgets (W).

These three products are themselvesinputs into a final production process that produces Good "X", a finished end-product which the company then sells to retail consumers.

Each type of component is required in equal quantities for the final production process, so total company-wide productive output of Xdepends on producing as many as possible of each of the 3 input goods.

Each facility's possibleproductive output per hour is given below.Any given facility can only produce one thing at a time. For example, Alexandria can make 20 Thingamajigs per hour, or one every 3 minutes.

OUTPUT Doohickeys Thingamajigs Widgets
Alexandria 60 20 12
Baton Rouge 75 30 25
Chalmette 90 30 45

For any given facility considered in isolation, the "next best alternative" to producing either Thingamajigs or Widgets would be to produce Doohickeys instead (since the quantity able to be produced is so high).

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

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions

Question

What does this look like?

Answered: 1 week ago