This part is similar to part 1, but instead of being given the number of repipes and tankless installs per 40 hour workweek, you are given the time per repipe or tankless install, in hours. Each worker works 40 hours. The productivity of the six workers differs from part 1. Hours per tankless Worker Hours per repipe install Austin 4.5 6.5 Cody 5 8 Dallas 3 4.5 Lincoln 2 4.5 Pierre 2.5 5 Victoria 3 4 12. If each worker split their time equally between repipes and tankless installs (i.e., devoted 20 hours to each), how many repipes could Altona complete if all workers work a 40 hour week? (Partial repipes are allowed; enter your answer to one decimal place.) 13. If each worker split their time equally between repipes and tankless installs, how many tankless installs could Altona complete if all workers work a 40 hour week? (Partial tankless installs are allowed; enter your answer to one decimal place.) 14. If you used the concept of comparative advantage to maximize the number of tankless installs given the number of repipes you gave in question (12), how many tankless installs could be produced? (You may find it easier to first convert the 'Hours per repipe and 'Hours per tankless install' to 'Repipes per 40 hour workweek' and 'Tankless installs per 40 hour workweek,' then proceed as in part 1 of this assignment.) (Hint: If your answer is not greater than your answer to question 13, either your answer to 13 or your answer to this question must be incorrect.) 15. If you used the concept of comparative advantage to maximize the number of repipes given the number of tankless installs you gave in question (13), how many repipes could be produced?Ii You are given the following information for a company: Total revenue 26,000,000 Total non-ca pital costs 14,300,000 Capital equipment purchase price and original ma rket value 12,000,000 Equipment salvage value, as percent of purchase price 18% Depreciable life of the capital equipment, years 13 Annual return on capital invested in a similarly risky investment 14% 1. Calculate the annual accounting profit. In making this calculation, assuming that the tax laws require accountants to use a 10-year straight-line depreciation of the original purchase price net of the salvage value (e.g., a $100,000 piece of equipment with a salvage value of $10,000 would have annual depreciation of ($100,000 - $10,000)l10 = 59000). (Note: you will be using 10 years regardless of what you are given above for the actual depreciable life of the equipment.) 2. Calculate the economic profit using the average annual opportunity cost of the capital. See ML203's third example for guidance. (You will be using this opportunity cost instead of the depreciation described in (1). This calculation will use the depreciable life of the capital equipment given on line #5.)
