quiz 1 sec 2 sol

quiz 1 sec 2 sol - x TVs per week. Also sketch this cost as...

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IE 343 Spring 2010 Name: KEY Section 2, Quiz 1 (last) (first) Closed book, closed notes. No calculators. 1. Samsung is considering investing in a new line to manufacture LCD TVs. The cost of running this line is $2 million (incurred regardless of what the production level is). The cost of materials for manufacturing a single TV on this line is $1,500. The cost of labor per TV is $250. Write down the expression for the total cost per week for Samsung to run this line and produce
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Unformatted text preview: x TVs per week. Also sketch this cost as a function of number of TVs produced per week. (label all axes and intercepts) Sol: (5) (3) 2. LG paid out $1.5 million last month for the raw materials required to make 100,000 washing machines. They also paid out $60,000 last month in electricity bills. Which of this is a direct cost, and which is an indirect cost? Sol: (2) Raw materials are direct costs. Equipment Maintenance is treated as indirect costs. $2M x TC...
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