Assignment Questions Case Study Example | Topics and Well Written Essays - 1500 words

Assignment Questions - Case Study Example The coefficient of population does not in any way affect any other coefficient or be affected. What we can derive from the population coefficient is that 3.48 is stronger tham 2.0 and 5.5 is stronger than 3.48. Current accounting information is sufficient. Cost of production of the items varies but there is cost that is associated to unused capacity in the firm. If Einstein Inc. decides to stop production of Product to the unused capacity in the factory such as space, engineers and production managers will have extra cost on the produced products. To avoid the extra cost from unused capacity the firm would have to sell more items from the items that are performing or to release the resources that would carry this extra cost such as retrenching managers involved in production of product 2 The period under which the economy heats up will require extra resources to produce product 1 and 4 to the maximum output. The information given in above is not enough to make a decision on how much is maximum output as there resources need to produce any of the products is not included. In calculating the maximum output for product 1 and 4 the firm needs to measure the maximum output of its resources (lumpiness of capacity). They need to establish the maximum capacity they can handle and factor it. The will also need to calculate the cost per unit during the maximum period considering the cost or unused capacity of product 2 and 5 and the limited capacity for product 3. Determining the unit cost of the product will enable the firm to calculate the maximum number of products they can produce for product 1 and 4 and take care of the unused capacity of other products also the firm will need to consider capacity product 3 which might increase the cost of production if the volumes reduce. The information provided is not sufficient, as the cost of production is not separate. While, this is true the focus on products