Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

in the text? 3. Usha runs a clothes factory that fulfils outsourced orders for the big brands. The factory's production schedule is as follows: No.

image text in transcribed

in the text? 3. Usha runs a clothes factory that fulfils outsourced orders for the big brands. The factory's production schedule is as follows: No. of Workers Wages (per hour) Output (units per hour) Function 24 Cutting Sewing Finishing Inspection Packing Total 100 60 40 40 30 60 15 45 90 90 Right now, the factory works in a single shift of 8 hours each day. It is proposed to her that she can replace some of the functions with machines for the same level of production. The cutting workers can be replaced with 2 machines to be operated by one person each, whereas sewing workers can be replaced by 12 machines to be operated by one person each. The machines come at an expense of 50,000 for cach cutting machine and 780,000 for each sewing machine. Packing can be done entirely by a machine worth 60,000 to be operated by a single person. The remaining functions cannot be replaced with machines. (a) Depict all the three machines-worker trade-offs through isocost and isoquant framework. (b) Estimate the hourly production of the factory and cost of each unit (c) If the invested money has no interest opportunity and Usha aims to recover the investment within 3 months, which of the three machines should she install? Why? in the text? 3. Usha runs a clothes factory that fulfils outsourced orders for the big brands. The factory's production schedule is as follows: No. of Workers Wages (per hour) Output (units per hour) Function 24 Cutting Sewing Finishing Inspection Packing Total 100 60 40 40 30 60 15 45 90 90 Right now, the factory works in a single shift of 8 hours each day. It is proposed to her that she can replace some of the functions with machines for the same level of production. The cutting workers can be replaced with 2 machines to be operated by one person each, whereas sewing workers can be replaced by 12 machines to be operated by one person each. The machines come at an expense of 50,000 for cach cutting machine and 780,000 for each sewing machine. Packing can be done entirely by a machine worth 60,000 to be operated by a single person. The remaining functions cannot be replaced with machines. (a) Depict all the three machines-worker trade-offs through isocost and isoquant framework. (b) Estimate the hourly production of the factory and cost of each unit (c) If the invested money has no interest opportunity and Usha aims to recover the investment within 3 months, which of the three machines should she install? Why

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

Liquidity Risk Management In Banks Economic And Regulatory Issues

Authors: Roberto Ruozi, Pierpaolo Ferrari

1st Edition

3642295800, 978-3642295805

More Books

Students also viewed these Finance questions