Solved

Solve the Problem Then a and B Represent the ʺCosts Per Dollar of Worth

Question 59

Essay

Solve the problem.
-A company manufactures two products. For $1.00 worth of product A, the company
spends $0.40 on materials, $0.25 on labor, and $0.10 on overhead. For $1.00 worth of
product B, the company spends $0.50 on materials, $0.20 on labor, and $0.10 on overhead.
Let a=[0.400.250.10] and b=[0.500.200.10]\mathbf { a } = \left[ \begin{array} { l } 0.40 \\0.25 \\0.10\end{array} \right] \text { and } \mathbf { b } = \left[ \begin{array} { l } 0.50 \\0.20 \\0.10\end{array} \right] Then a and b represent the ʺcosts per dollar of incomeʺ for the two products.
Evaluate 100a + 400b and give an economic interpretation of the result.

Correct Answer:

verifed

Verified

\[100 \mathbf { a } + 400 \mathbf { b } ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions