Priate weight factor? Problems: Series B
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PR 19-1B Support department cost allocation
Obj. 3
Hooligan Adventure Supply produces and sells various outdoor equipment. The Molding and
Assembly production departments are supported by the Personnel and Maintenance departments.
Personnel costs are allocated to the production departments based on the number of employees,
and Maintenance costs are allocated based on number of service calls. Information about these
departments is detailed in the following table:
Personnel Maintenance Molding Assembly
Department Department Department Department
Number of employees
28
10
Number of service calls
57
168
112
Department cost
$15,000
$11,400
$72,000
$69,000
(Continued)
41
49
41

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

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What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk