Monopoly uses two steps to make a game. Step 1 takes 20 seconds. Step 2 takes 15 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $15 per hour. Each game is sold for $20. Material costs are $5 per game and fixed costs are $500 per hour. Demand rate is 120 games per hour. How much profit does Monopoly make per hour

Monopoly

The profit that Monopoly makes per hour is:

= $1,876.

Explanation:

a) Data and Calculations:

Direct labor costs:

Step 1, 20 seconds at $15 per hour = $5

Step 2, 15 seconds at $15 per hour = $3.75

Total   35 seconds at $15 per hour = $8.75

Direct materials cost                            $5

Variable cost per game =                   $13.75

Fixed cost per game = (500 * 35/60) = $292.00

Total cost of production =                   $305.75

Revenue (120 * $20) =        $2,400

Variable cost per hour =             24  ($13.75 * 60/35)

Fixed cost per hour =               500

Total cost per hour =             $524

Profit per hour =                   $1,876

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.