[Mohamed]

Optimum point lies in Demand for x (x = 1000) and Labour.
New optimum will be x = 1000 and y = 1800.02

I forgot the objective function, i think the shadow price is $1.06 or $1.6 something like that.

[Mohamed]

There is a step up FC, easy to use equation method.

@5000u: 23000 = 5000*VC + FC
@7000u: 31500 = 7000*VC + FC+500

VC = $4/u
FC = $3000

therefore @9000u: 9000*4 + (3000+500+500) = $40000.

[Mohamed]

Act mix cost $1560
Std mix for act
3/5*120 = 72 * 10 $720
2/5* 120 = 48 * 15 $720 $1440
$120A

[Mohamed]

Relevant Cost is $75
Labour and Machine 20+30 = $50
Lost Contribution (15+10) = $25

Usage Mix Variance is $120A
Act mix cost $1560
Std mix for act
3/5*120 = 72 * 10 $720
2/5* 120 = 48 * 15 $720 $1440

[Author]

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