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Please help me with following questions, thank you so much. a) You sell 2 products. Product one has sales of $50,000 on volume of 1,000.

Please help me with following questions, thank you so much.

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a) You sell 2 products. Product one has sales of $50,000 on volume of 1,000. Each unit needs 11 minutes to inspect. Costs are $20,106 variable and $11,810 xed. Product 2 has sales of $1 50,000 on volume of $2,000. Each unit needs 13.3 minutes to inspect. Costs are $61,254 variable and $41,953 xed. Assume that inspection time is scarce. Calculate the total shadow cost of inspection time in $/lround to the dollar). b) Notwithstanding your answer to the last question, assume the shadow cost is $150/hour. You are considering adding a third product. The third product would sell for $73 per unit. Variable cost to produce it would be $21 per unit and xed costs would be $21,864. Inspection time for the product would be 15.3 minutes per unit. Calculate the breakeven volume for this new product, taking opportunity cost into account. c) This situation is an example of which type of product interaction? A) Supply complement B) Supply substitution C) Demand substitution D) Demand complement

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