The Mountain Lion Corporation is working at till production capaoty producing 9.000 units of a unique product. Evertast Manufacturing cost per unit for Evertast is as follows: A customer, the Apex Company, has asked Mountain Lion to produce 1.500 units of Strongtast, a modfication of Evertast Stronglast would require the same manufacturing processes as Everlast. Apox has offered to pay Mountain Lion $44 for a unit of Stronglast plus haf of the marketing cont per unit. Read the rocuirements Requirement 1. What is the epportunity cost to Mountain Lion of producing the 1,500 units of Suronglast? (Assume that no owertme is worked) Determsine the formula for calculating the osportunity cost, then calculate the opportunity cost of producing the 1,500 units of Stronglast. Requirements 1. What is the opportunity cost to Mountain Lion of producing the 1,500 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 1,500 units of Everlast for Mountain Lion so that Mountain Lion may accept the Apex offer. That is, if Mountain Lion accepts the Chesapeake offer, Mountain Lion would manufacture 7,500 units of Everlast and 1,500 units of Stronglast and purchase 1,500 units of Everlast from Chesapeake. Chesapeake would charge Mountain Lion $43 per unit to manufacture Everlast. On the basis of financial considerations alone, should Mountain Lion accept the Chesapeake offer? Show your calculations. 3. Suppose Mountain Lion had been working at less than full capacity, producing 7,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Mountain Lion should accept for Stronglast under these conditions. (Ignore the previous $44 selling price.) The Mountain Lion Corporation is working at till production capaoty producing 9.000 units of a unique product. Evertast Manufacturing cost per unit for Evertast is as follows: A customer, the Apex Company, has asked Mountain Lion to produce 1.500 units of Strongtast, a modfication of Evertast Stronglast would require the same manufacturing processes as Everlast. Apox has offered to pay Mountain Lion $44 for a unit of Stronglast plus haf of the marketing cont per unit. Read the rocuirements Requirement 1. What is the epportunity cost to Mountain Lion of producing the 1,500 units of Suronglast? (Assume that no owertme is worked) Determsine the formula for calculating the osportunity cost, then calculate the opportunity cost of producing the 1,500 units of Stronglast. Requirements 1. What is the opportunity cost to Mountain Lion of producing the 1,500 units of Stronglast? (Assume that no overtime is worked.) 2. The Chesapeake Corporation has offered to produce 1,500 units of Everlast for Mountain Lion so that Mountain Lion may accept the Apex offer. That is, if Mountain Lion accepts the Chesapeake offer, Mountain Lion would manufacture 7,500 units of Everlast and 1,500 units of Stronglast and purchase 1,500 units of Everlast from Chesapeake. Chesapeake would charge Mountain Lion $43 per unit to manufacture Everlast. On the basis of financial considerations alone, should Mountain Lion accept the Chesapeake offer? Show your calculations. 3. Suppose Mountain Lion had been working at less than full capacity, producing 7,500 units of Everlast, at the time the Apex offer was made. Calculate the minimum price Mountain Lion should accept for Stronglast under these conditions. (Ignore the previous $44 selling price.)
