Howie Jones owns and operates Blue Ridge Hot Tubs, a company that sells two models of hot tubs: the Aqua-Spa and the Hydro-Lux. Howie purchases prefabricated fiberglass hot tub shells and installs common water pumps and the appropriate amount of tubing into each hot tub. Every Aqua-Spa requires a pump, 12 hours of labor and 16 feet of tubing; every Hydro-Lux requires 2 pumps, 16 hours of labor and 8 feet of tubing. Demand for these products is such that each Aqua-Spa produced can be sold to generate a profit of $275, and each Hydro-Lux produced can be sold to generate a profit of $250. The company expects to have 450 pumps, 91 workers, and 3,080 feet of tubing available during the next week’s production cycle. Determine the optimal number of Aqua-Spas and Hydro-Luxes to produce to maximize profit assuming all employees work their 40 hours with no overtime.

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Why is efficiency an important economic goal?

Aprimary advantage of organizing economic activity within firms is thea. ability to coordinate highly complex tasks to allow for specialized division of labor. b. low administrative costs because of reduced bureaucracy. c. eradication of the principal-agent problem. d. high-powered incentive to work as salaried employees for an existing firm.