Assume that a local restaurant sells two items, salads and steaks. The restaurant's only two customers on a particular day are Mr. Carnivore and Ms. Leafy Greens. Mr. Carnivore is willing to pay $20 for a steak and $7 for a salad. Ms. Leafy Greens is willing to pay only $8 for a steak, but is willing to pay $12 for a salad. Assume that the restaurant can provide each of these items at zero marginal cost. Refer to Scenario 17-1 . If the restaurant is unable to use tying, what is the profit-maximizing price to charge for a steak

Answers

Answer 1

Based on the information given, it should be noted that the profit-maximizing price will be $20.

From the information given, the willingness to pay Mr. Carnivore will be:

= $20 + $7 = $27

The willingness to pay Ms. Leafy greens will be:

= $8 + $12 = $20

In this case, the profit-maximizing price should be the lower value. Therefore, the price will be $20.

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Related Questions

Question 4
What is the main risk posed by pests in the operation?
SELECT ONE
a
Cross-contact
b Chemical contamination
C Temperature abuse
d Biological contamination

Answers

The main risk posed by pests when it comes to food is that of d. Biological contamination

Pests are very bad for food because:

They can infect it with faces They can infect the food with dangerous pathogens

Fetal contamination and bacterial (pathogenic) infections are examples of biological contamination.

We can therefore conclude that pests are more likely than not, to pose a risk of biological contamination.

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the process by which companies get new customers, keep the customers they already have, and grow the bussiness by increasing their share of customers purchases is referred to as

Answers

Buisnesses and organisations are able to attract and retain valuable customers due to Customer relationship management (CRM)

Customer relationship management (CRM) is a process in which an organisation uses based on principles and guidelines to efficiently interact and cater to its customers.

Typically with the use of technology of CRM systems such as data analysis, Businesses are able to study and compile large and different amounts of information of their target customers.

This will enable them to effectively cater to their needs leading to improved sales yields and retainment of customers.  

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Which strategy for managing quality relies on input from employees, suppliers and customers

Answers

Answer:

total quality management (tqm)

Explanation:

hope it helps you

Freer trade, advances in information technology, and more global customers are pressuring many large global companies to:

Answers

Firms are often involve in different kinds of trade. Freer trade, advances in information technology, and more global customers are pressuring many large global companies to shift from functional structures to geographically based divisionalized structures.

There are great advances in information technology (IT). Firms often get benefits of free trade in IT as they are able to expand their business into other different new areas with less effective charges.

FTA is known to be very good to optimal sharing of resources in the region as it helps to boast the efficiency of economic activities and also increase the stock of a country's technology.

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Olivas Recreation reported a net income of $3.2 billion, interest expense of $214 million, and income tax expense of $195 million in 2022. What is their times interest earned

Answers

The times interest earned is 16.86 times.

The times interest earned is also known as interest coverage. It is a type of coverage ratios. Coverage ratios measure the ability of a company to cover its debt payment.

Times interest earned = earnings before interest and taxes / interest payment

Earnings before interest and taxes = net income + interest expense + tax expense

$3.2 billion + 214 million + 195 million = $3.609 billion

Times interest earned = $3.609 billion / $214 million = 16.86 times

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You are considering purchasing an office building for $2,500,000. You expect the potential gross income (PGI) in the first year to be $450,000; vacancy and collection losses to be 9 percent of PGI; and operating expenses and capital expenditures to be 38 percent and 4 percent, respectively, of effective gross income (EGI). What is the implied first-year overall capitalization rate

Answers

Based on the information given the implied first-year overall capitalization rate is 9.50%.

Vacancy and collection losses = 9% of  PGI

Vacancy and collection losses =$450,000×9%     Vacancy and collection losses=$40,500

Effective gross income (EGI)= PGI - vacancy and collection losses

Effective gross income (EGI)= 450,000 - 40,500

Effective gross income (EGI)=$409,500

Operating expenses= 38% of EGI

Operating expenses= 0.38 × 409,500

Operating expenses=$155,610

Net operating Income(NOI)= EGI - Operating expenses

Net operating Income(NOI)=$409,500 - $155,610

Net operating Income(NOI)= $253,890

Capital expenditure= 4% of EGI

Capital expenditure= 409,500×4%

Capital expenditure= $16,380

Adjusted Net Operating Income=Net operating Income - Capital expenditure

Adjusted Net Operating Income=$253,890 - $16,380

Adjusted Net Operating Income=$237,510

Implied overall capitalization rate = Adjusted Net operating income ÷ Value of property

Implied overall capitalization rate=$237,510 ÷$2,500,000

Implied overall capitalization rate=9.50%

Inconclusion the implied first-year overall capitalization rate is 9.50%.

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What is the unemployment rate in Cuba?

Answers

Answer:

Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Cuba unemployment rate for 2020 was 3.87%, a 2.2% increase from 2019. Cuba unemployment rate for 2019 was 1.67%, a 0.03% decline from 2018.

Explanation:

20 Points
Describe the educational background or training necessary for your chosen career (Doctor).

Answers

Step 1: Earn an Undergraduate Degree

The path to becoming a doctor begins with a bachelor's degree program. There is relative flexibility in the subject studied, but undergraduate schooling for doctors should include a pre-med focus, which ensures that necessary science-based core curriculum is coveLred prior to the candidate's progression to medical school. These programs typically have a heavy focus on biology and chemistry, with plenty of physics, math and English courses to prepare a student to apply to med school.

Step 2: Pass the MCAT2103

The Medical College Admission Test (MCAT) is a multiple choice exam taken before admission into medical school. The MCAT tests an aspiring doctor's knowledge of the physical and biological sciences and verbal reasoning and writing skills. The test is computerized and it takes approximately five hours to complete.

Step 3: Attend Medical School

Doctor education and training continues with medical school. The initial two years are spent in classrooms and laboratories, where students take the necessary courses to prepare them for diagnosing and treating patients. During the second year of doctors' education, students must pass the first of a series of the United States Medical Licensing Examinations, referred to as 'The Boards', which are administered by the National Board of Medical Examiners. During the second half of medical doctor training, prospective doctors practice under the tutelage of attending physicians to learn the realities of practicing medicine. During their fourth year of medical school and first year of residency training, doctors take their remaining medical licensing examinations.

Step 4: Complete Residency Training

In their fourth year of medical school, candidates are paired with a residency training program in a rite of passage called 'Match Day.' Depending upon his or her specialty, a candidate may spend between three and seven years in residency at a medical facility. Beyond taking classes to become a doctor, this gives them on-the-job experience. They work under the direct supervision of an attending physician and focus on practical training in general medicine and their chosen specialty.

Step 5: Get Licensed

In order to become a doctor, a candidate must obtain a license to practice medicine. Requirements for medical licensing differ from state to state and all states issue their own licenses based on state regulations. Licensing generally requires completing medical school and successfully passing all medical licensing examinations.  How many years does it take to become a doctor? It usually takes between 11 and 15 years to meet all the education and training requirements. This includes an undergraduate degree, medical school, and a residency. Once a prospective doctor finishes all the necessary education and physician training, they should see a number of job opportunities, as job growth is expected to rise 13% from 2016-2026 and a rewarding salary should also be anticipated.

Which business policy would most likely help a single parent family?

Answers

Work in restaurant like Mac and bohari

Your dishwasher can handle 100 plates per hour. Your stove can handle 30 meals (each on single plate) per hour. All of your meals require plates but only 60% of meals need something prepared on the stove. Which is more likely to cause a bottleneck, the dishwasher or the stove?

Answers

Based on the capacities of the dishwasher and the stove, the likely source of a bottleneck is the stove.

A bottleneck refers to:

A point in the production process that slows down production A point in the production process that is being overloaded with workloads

The dishwasher can wash 100 plates per hour. Assuming 60 meals were to be made in an hour, the dishwasher would be able to wash enough dishes but the stove would only handle 30 meals yet it is to handle:

= 60 x 60%

= 36 meals

In conclusion, the stove is therefore the source of the bottleneck.

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Lucy and Everly, a clothing retail company, wants to collect secondary data on the buying behavior of teenage customers in its new geographic market. Which action will Lucy and Everly most likely take in order to obtain this data

Answers

The action that Lucy and Everly will most likely take is obtaining of data compiled by databases created by marketing research firms within the new geographic market.

Marketing research means a process of gathering, recording, analyzing and drawing conclusion on collected data from potential customers of a product to facilitate decision making.

Main purpose of the marketing research is to provides information which are relevant for decision making in the firm.

A marketing research data are also provided by marketing research firms to firms who need them.

In conclusion, the action that Lucy and Everly will most likely take is obtaining of data compiled by databases created by marketing research firms within the new geographic market.

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Rein Inc. reported deferred tax assets and deferred tax liabilities at the end of 20X3 and at the end of 20X4.
According to Statement of Financial Accounting Standard No. 109 Accounting for Income Taxes, for the year ended 20X4, Rein should report deferred income tax expense or benefit equal to the
A. Sum of the net changes in deferred tax assets and deferred tax liabilities.
B. Increase in the deferred tax liabilities.
C. Amount of the current tax liability, plus the sum of the net changes in deferred tax assets and deferred tax liabilities.
D. Decrease in the deferred tax assets.

Answers

Answer: A

sum of the net changes in deferred tax assets and deferred tax liabilities.

Explanation:

example of globalization as internalization and liberalization

Answers

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Example of Liberalization : - European Union has liberalized gas and electricity market.

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Example of globalization : - trading of commodities such as coffee or avocados.

❤Hope it's helpful↑(◍•ᴗ•◍)❤࿐

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The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement

Answers

Answer:

4 $ 248,400. Credit the buyer only.

Consider a property with NOI of $72,000 and a debt coverage ratio of 1.2 applied to first year NOI. What would be the estimated monthly mortgage payment

Answers

Answer:

$10000 per month

Explanation:

I don't know

If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, how many American dollars are required to buy a product that costs 3.50 New Zealand dollars

Answers

2.57 American dollars are required to buy a product that costs 3.50 New Zealand dollars.

Given that the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, to determine how many American dollars are required to buy a product that costs 3.50 New Zealand dollars, the following calculation must be performed:

1.36 = 1 3.50 = X 3.50 x 1 / 1.36 = X 3.50 / 1.36 = X 2.57 = X

Therefore, 2.57 American dollars are required to buy a product that costs 3.50 New Zealand dollars.

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What organization design aspects of Zara make it so succuccessful ?

Answers

Answer:

The secret to Zara’s success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay. From the very beginning, Zara found a significant gap in the market that few clothing brands had effectively addressed. This was to keep pace with latest fashion trends, but offer clothing collections that are a combination of high quality and yet, are affordable. The brand keeps a close watch on how fashion is changing and evolving every day across the world. Based on latest styles and trends, it creates new designs and puts them into stores in a week or two. In stark comparison, most other fashion brands would take close to six months to get new designs and collections into the market.

It is through this strategic ability of introducing new collections based on latest trends in a rapid manner that enabled Zara to beat other competitors. It quickly became the people’s favourite brand, especially with those who want to keep up with fashion trends. Founder Amancio Ortega is famously known for his views on clothes as a perishable commodity. According to him, people should love to use and wear clothes for a short while and then they should throw them away, just like yogurt, bread or fish, rather than store them in cupboards.

The media often quotes that the brand produces “freshly baked clothes”, which survive fashion trends for less than a month or two. Zara concentrates on three areas to effectively “bake” its fresh fashions:

Shorter lead times (and more fashionable clothes): Shorter lead times allow Zara to ensure that its stores stock clothes that customers want at that time (e.g. specific spring/ summer or autumn/ winter collections, recent trend that is catching up, sudden popularity of an item worn by a celebrity/ socialite/ actor/ actress, latest collection of a top designer etc.). While many retailers try to forecast what customers might buy months in the future, Zara moves in step with its customers and offers them what they want to buy at a given point in time.

Lower quantities (through scarce supply): By reducing the quantity manufactured for a particular style, Zara not only reduces its exposure to any single product but also creates artificial scarcity. Similar to the principle that applies to all fashion items (and more specifically luxury), the lesser the availability, the more desirable an object becomes. Another benefit of producing lower quantities is that if a style does not generate traction and suffers from poor sales, there is not a high volume to be disposed of. Zara only has two time-bound sales a year rather than constant markdowns, and it discounts a very small proportion of its products, approximately half compared to its competitors, which is a very impressive feat.

More styles: Rather than producing more quantities per style, Zara produces more styles, roughly 12,000 a year. Even if a style sells out very quickly, there are new styles waiting to take up the space. This means more choices and higher chance of getting it right with the consumer.

Zara only allows its designs to remain on the shop floor for three to four weeks. This practice pushes consumers to keep visiting the brand’s stores because if they were just a week late, all the clothes of a particular style or trend would be gone and replaced with a new trend. At the same time, this constant refreshing of the lines and styles carried by its stores also entices customers to visit its shops more frequently.

In the following sections, the key components of Zara’s winning formula in the fashion retailing industry are illustrated.

Explanation:

Firm I has been selling its products through a distributor for some time. It has become the market share leader. Unfortunately, this distributor has not been able to keep up with the evolving technology and customers are complaining. There are no alternative distributors available. Should Firm I keep its current distributor or should it begin distribution on its own?

Answers

Firm I should  begin distribution on its own in order to prevent loss and

liquidation of the company.

It is best for the company to become vertically integrated in instances such

as this. Vertical integration involves companies controlling more than one

stage of production.

By so doing, the company can restrategize and ensure its products satisfy

the customers through the adoption of the technology they are complaining

about. This helps to ensure increased profit made from the goods.

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In this activity, you’ll research incidents in which employers disciplined employees for not using social media responsibly. You’ll study why employers disciplined these employees and how company social media policies influenced the action taken against them. You’ll also create a list of five social media usage rules that you think all workers must follow. Finally, you’ll write about how you’ll avoid risky behaviors when using social media. Part A Conduct an Internet search and research at least three instances in which employers disciplined (or fired) employees (who were not at work during the time of posting) for an inappropriate social media posting. Briefly discuss the three instances and explain why the employer fired or punished the employee and how the social media post was inappropriate.

Answers

Answer:

in sum, an employer can terminate an employee for posting about individual gripes, but there can be a fine line between an individual complaint and attempt at concerted activity. Employers should consult with counsel before terminating or disciplining an employee for posting about work-related activity.

Summarize the relationship between knowledge and skill and the level of wages in the labor
market
?

Answers

Answer:

The relationship between knowledge and skill is easy to explain. If you have the knowledge (college degree) then companies will probably hire them because even if they don't have the skill, they are credible and can still be taught. Someone with skill but no degree is viewed as not as valuable.

Explanation:

Just as in any market, the price of labor, the wage rate, is determined by the intersection of supply and demand. When the supply of labor increases the equilibrium price falls, and when the demand for labor increases the equilibrium price rises.

Imagine it's the middle of January, and people are thinking about Valentine's Day. What will happen in the market for fresh flowers? Use supply and demand analysis in your explanation (Hint: What happens to demand and/or supply? What happens to the equilibrium price and equilibrium quantity?)

Answers

Answer:

the price would go up with the demand and the stock drop

Martin is an intern working for Tennessee Fried Chicken (TFC), an international company with over 1,000 franchised restaurants throughout the United States and in 21 other countries. TFC heavily advertises on television and in various print media that its chicken is superior due to its blend of "42 secret herbs and spices." Many have tried to duplicate the recipe unsuccessfully, and burglars have even been caught trying to steal it. One day Martin is called into the president's office for an assignment, and during their conversation, the president leaves the room, leaving Martin alone. Martin notices that the wall safe is open and looks inside, where he sees an envelope labeled "THE RECIPE." He opens it and finds that it is the list of the 42 secret herbs and spices, along with quantities and order of use. He quickly makes a copy of the recipe and returns the envelope to the safe. That afternoon, he calls Bluto's Fried Chicken, a TFC competitor, and informs Bluto's of the information he possesses, and they arrange a meeting. If Martin sells the recipe to Bluto's, who, if anyone, would be guilty of mis-appropriation?
a. If Martin sells the recipe to Bluto's, Martin is guilty of misappropriation but Bluto's is not guilty of misappropriation.
b. If Martin sells the recipe to Bluto's, Martin is not guilty of misappropriation but Bluto's is guilty of misappropriation.
c. If Martin sells the recipe to Bluto's, both Martin and Bluto's are guilty of misappropriation.
d. Neither Martin nor Bluto's is guilty of misappropriation because leaving the safe open shows that the secret was not guarded and guarding is necessary to qualify for trade secret protections.

Answers

The culprits of misappropriation would be both Martin and Bluto's Fried Chicken.

Misappropriation is a crime against wealth or property. This crime occurs when a person or group seizes someone else's property, to make a profit.

According to the foregoing, both are incurring misappropriation because:

Martin: He was not the creator or owner of the recipe, he stole it in a moment of the owner's carelessness and wanted to obtain personal gain in exchange for the product owned by TFC.

Bluto's Fried Chicken: He knows that Martin obtained the recipe illegally, yet he still decides to make the transaction to copy the recipe and make more profit in his business.

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What is 48976897617xitself

Answers

Answer:

Hey mate....

Explanation:

This is ur answer....

Wth....Is that even a question....Imao

Well I am getting this....

2.39873650E+21

Hope it helps!

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Explain why there are advantages to a movie studio operating in southern California, rather than in, say, Florida.

Answers

There are advantages to a movie studio operating in southern California

due to cheap labor and land and numerous scenery.

California is a state in which movie producers prefer operating in as a result

of cheap labor and land which helps to cut the cost needed for producing a

movie.

California also has a lot of scenery such as rivers, mountains etc which

makes the movies more appealing and  is also where Hollywood is located

which is where most movie production and promotion takes place.

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briefly explain how undertaking of agricultural modernisation is reducing open - urban employment​

Answers

increased demand for labour

Help bell pelsss I need starlight forward answer

Answers

Answer:

i ont know is coreect

It is a manageable increase so the answer is b I’m guessing I’m not sure

Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moody’s credit rating Aa Baa Fixed-rate borrowing cost 10.5% 12.0% Floating-rate borrowing cost LIBOR LIBOR + 1% This time assuming more realistically that a swap bank is involved as an intermediary. Assume the swap bank is quoting five-year dollar interest rate swaps at 10.7% - 10.8% against LIBOR flat. Consequently, Alpha will issue fixed-rate debt at 10.5% and Beta will issue floating rate-debt at LIBOR + 1%. Alpha will receive 10.7% from the swap bank and pay it LIBOR. Beta will pay 10.8% to the swap bank and receive from it LIBOR. If this is done, Alpha’s floating-rate all-in-cost is: 10.5% + LIBOR - 10.7% = LIBOR - .20%, a .20% savings over issuing floating-rate debt on its own. Beta’s fixed-rate all-in-cost is: LIBOR+ 1% + 10.8% - LIBOR = 11.8%, a .20% savings over issuing fixed-rate debt. Is that analysis correct?

Answers

Based on the information given about the LIBOR, it can be deduced that the analysis is correct. Therefore, it's true.

From the information given, the quality spread differential will be calculated thus:

= Differential fixed rate debt - Differential floating rate debt

= (12.0% - 10.5% - 1%)

= 0.5%

In this case, a positive quality spread differential implies that the swap is in favor of both parties.

In conclusion, the analysis that's given is correct.

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The best answer to both the flatness and horizon problems is Group of answer choices dark energy. the inflationary epoch. decoupling. the Steady State Theory. the GUT theory.

Answers

It should be noted that best answer to both the flatness and horizon problems is inflationary epoch.

The inflationary epoch van be regarded as the period in the evolution of the early universe, at this period there was an expansion.

According to inflation theory, the earth were recorded to experience great horizon problems and exponential expansion.

Therefore, inflationary epoch brings about both flatness and horizon problems

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Eduardo wants to purchase stock in a company that is headquartered in Australia. Eduardo

Multiple Choice

A. can buy the shares from a broker on a U.S. exchange.

B. cannot legally own the stock of an Australian corporation.

C. will have to place her order through the Sydney Stock Exchange.

D. must obtain an investor visa to complete the purchase.

Answers

The answer is: A - can buy the shares from a broker on a U.S. exchange.

Harper Motors sells 32 cars per month at an average price of $24,360. The carrying cost per car is $144 and the fixed order cost is $687. How many orders should the company place per year

Answers

The number of orders that the company should place per year is 6.34 orders.

Economic order quantity (EOQ) = (2* yearly demand*per order fixed cost/carrying cost per unit)^(1/2)

Economic order quantity (EOQ) = (2*(32*12)*687/144)^(1/2)

Economic order quantity (EOQ) = (2*384*4.7708)^(1/2)

Economic order quantity (EOQ) = 60.530772339

Economic order quantity (EOQ) = 60.53

Number of orders to be placed = Yearly demand / EOQ

Number of orders to be placed = (32*12)/60.53

Number of orders to be placed = 6.3439616719

Number of orders to be placed = 6.34 orders.

Therefore, the number of orders that the company should place per year is 6.34 orders.

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A pool has some initial amount of water in it. Then it starts being filled so the water level rises at a rate of 666 centimeters per minute. After 202020 minutes, the water level is 220220220 centimeters.Graph the relationship between the pool's water level (in centimeters) and time (in minutes). One restaurant was experimenting with lowering the cholesterol level of recipes by substituting different cooking oils/fats in their dishes. They chose olive oil, canola oil, and margarine. Different patrons received the recipe prepared with one of the three oils/fats and then were asked for their evaluation of texture, flavor, and overall satisfaction, intention to repurchase the entree. The experiment involved three ____. a. dependent variables.b. treatment levels.c. moderating variables.d. control groups.e. none of the above is correct. Which of the following animals has a fetus ? A.Gobies B.antelope C.Tree frog D. Iguana Mt i kh tng thy vn mun xem xt kh nng d bo thi tit ca mnh. T s liu thng k ch ra rng: xc sut d bo c nng trong ngy khng ma l 0,95; c nng trong ngy ma l 0,8; xc sut mt ngy s khng ma l 0,6. a. Tnh xc sut d bo ngy s c nng. b. Bit c d bo l ngy c nng, tnh xc sut ngy l ngy khng ma. ActivityIn this activity, you will research and explain in detail any one image capturing process that was historically in use. You could include variousdetails including its advantages and disadvantages. Explain how the hotel business could create added value to the goods they buy in? binomial expansions for clever cookies hlpppppp plesaseeeeeeeeeeeeeeeee n a history class there are 88 history majors and 88 non-history majors. 44 students are randomly selected to present a topic. What is the probability that at least 22 of the 44 students selected are non-history majors Nick feels that poverty exists because powerful people exploit the powerless. Jacob disagrees because he thinks poverty serves a purpose in society in that it makes people want to work hard to avoid being poor. Nick is a ___________ while Jacob is a _______________. Providing structure, guidance and support for achild's learning is known as what? The fact that a beam of particles was deflected in the presence of an electricor magnetic force led J.J. Thomson to conclude that the particles had a(n)O A. large massB. electric chargeO C. negligible massO D. neutral charge A researcher found a beautiful plant while traveling in Alaska and collected its seeds. When she came back to Florida, she soaked some of the seeds in pure water and some of these seeds in a water hormone solution. When she put all of the seeds in the soil to grow, only the seeds that had been soaked with the hormone germinated. The hormone most likely was ** I NEED TO GET THIS RIGHT IM DOING TEST CORRECTION**point p Is the circumcenter of ABC. point p is the point of concurrency of the perpendicular bisector. Find AS. Make a list of 3-5 of these issues and pick any one to explain in more detail. In your answer, include the points of view that are supported by different groups regarding the issue, current consequences of the issue, and how you think that the issue could be resolved. You are free to search for additional resources on your own to help develop your response. Firms engaged in international trade deal with people they may have never seen, who live in different countries, who speak different languages, and who abide by different legal systems. These factors result in name the fluid which is produced by sebaceous gland in parallelogram ABCD the measure of mA) 82.5B) 97.5C) 120D) 130 Assume you are in the 28 percent tax bracket and purchase a municipal bond with a yield of 3.10 percent. Use the formula presented in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Required:Three years ago you purchased a corporate bond that 5.8 percent. The purchase price was $1000. What is the annual dollar amount of interest that you receive from your bond investment? Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Schell has a total of $25,740 in overhead. It currently uses a traditional cost system with overhead applied to the product on the basis of either labor hours or machine hours. Schell has compiled the following information about possible cost drivers and its two product lines:Schell Company Total Quantity/Amount Consumed by Standard Floor Mat Line Quantity/Amount Consumed by Deluxe Floor Mat Line1,170 labor hours 740 labor hours 430 labor hours7,000 machine hours 2,900 machine hours 4,100 machine hoursRequired:a. Suppose Schell uses a traditional costing system with direct labor hours as the cost driver. Determine the amount of overhead assigned to each product line.b. Suppose Schell uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.