As it ask to run simulations the values calculates will difer even if you follow the same step as I did.
Answer:
Mean Profit: $ 4,295
Probability of loss: 29.80%
As the product has a mean profit it will on average generate gains
but:
as the standard deviation of the simulation was $ 7,778.40
we should not invest on the product as it is to variable
Explanation:
We are going to use the =RAND() function of excel
which, generates a random number between 0 and 1
This will be done 1,000 times 500 for the variable cost
and 500 for the demand.
Then we copy and paste this numbers to get them fixed.
Then, we convert them into actual cost and demand in units considering their distribution
using excel dist.norm.inv
Now, with this values we solve for profit on each one.
FOr the complexity I attached the excel file as the plataform interface cannot handle large tables.
During a press conference, a manager at Ruskin Welt Inc. makes a major announcement about the company's new product line. In this scenario, the manager has taken up the _____.
Which of the following is NOT a feature in the Formulas menu of the Macabacus Excel add-in? Review Later Summary Statistics Error Wrap Quick CAGR Formula Flow
The following that is NOT a feature in the Formulas menu of the Macabacus Excel add-in is Formula Flow. This is further explained below.
What is Formula Flow?Generally, The formula for the volumetric flow rate is as follows: Vf = A*v, where A is the cross-sectional area and v is the flow velocity.
In conclusion, Macabacus is an Excel add-in that has many useful features, but Formula Flow is not one of them.
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Understanding Relationships between Overhead Variances, Budgeted Amounts, and Actual Units Produced and Direct Labor Hours Worked Last year, Gladner Company had planned to produce 140,000 units. However, 143,000 units were actually produced. The company uses direct labor hours to assign overhead to products. Each unit requires 0.9 standard hour of labor for completion. The fixed overhead rate was $11 per direct labor hour, and the variable overhead rate was $6.36 per direct labor hour. The following variances were computed:
Fixed overhead spending variance $24,000 U
Variable overhead spending variance $9,196 U
Fixed overhead volume variance 29,700 F
Variable overhead efficiency variance 1,272 U
Required:
1. Calculate the total applied fixed overhead.
2. Calculate the budgeted fixed overhead.
3. Calculate the actual fixed overhead.
4. Calculate the total applied variable overhead.
5. Calculate the number of actual direct labor hours.
6. Calculate the actual variable overhead.
Answer:
Explanation:
1) Fixed Overhead applied = Actual unit produced * Standard hour * Direct labor hour
Fixed Overhead applied = 143,000 * 0.9 * $11
Fixed Overhead applied = $1,415,700
2) Budgeted fixed overhead = 140,000 * 0 .9 * $11
Budgeted fixed overhead = $1,386,000
3) Actual fixed overhead = Spending variance + Budgeted overhead
Actual fixed overhead = $24,000 + $1,386,000
Actual fixed overhead = $1,410,000
4) Applied variable overhead = 143000*0.9*$6.36
Applied variable overhead = $818,532
5) Variable efficiency variance = (AH*SR) - (SH*SR)
1272 = (AH * 6.36) - 818,532
1272 + 818,532 = AH *6.36
AH = 819804/ 6.36
Actual hours = 128,900 hours
6) Variable spending variance = AH*(AR -SR)
9196 = 128,900( AR - 6.36)
9196 /128,900 = AR - 6.36
0.07134 = AR - 6.36
AR = 0.07134 + 6.36
AR = $6.43 per labor hour
Actual overhead = $6.43 * 128,900
Actual overhead= $828,827
1.
Total fixed Overhead applied is
= 143000 × .9 × 11
= $ 1,415,700
2.
Budgeted fixed overhead is
= 140,000 × .9 × 11
= $ 1,386,000
3.
The actual fixed overhead is
= Spending variance + Budgeted overhead
= $24000 + $ 1,386,000
= $ 1,410,000
4.
The total applied variable overhead is
= 143000 × .9 × 6.36
= $818,532
5.
The variable efficiency variance = (Actual hours × Standard rate) - (Standard hours × Standard rate)
1272 = (Actual hours × 6.36 ) - 818,532
1272 +818,532 = Actual hours × 6.36
Actual hours = 819804÷ 6.36
= 128,900 hours
6.
The actual variable spending variance = Actual Hours(Actual rate -Standard rate)
9196 = 128,900(Actual rate - 6.36)
9196 ÷ 128,900 = Actual rate - 6.36
0.07134 = Actual rate - 6.36
Actual rate = 0.07134 + 6.36
= 6.43 Per labor hour
Now
Actual overhead = 6.43 × 128,900
= $828,827
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12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.
1. Paid Office Station Co. for part of the debt incurred on April 5, $1,200.
Debit: Accounts Payable - Office Station Co.$1,200
Credit: Cash $1,200
2. Provided services on account, $4,200.
Debit: Accounts Receivable $4,200
Credit: Service Revenue $4,200
To pay off the remaining balance owing to Office Station Co., a debit is sent to the accounts payable account. To account for the cash outflow, the Cash account is credited. This journal entry records the settlement of a portion of the debt incurred on April 5 with Office Station Co.
The acknowledgment of revenue for services rendered to a client on the account is represented by this journal entry. To reflect the increase in the amount due by the client, the Accounts Receivable account is debited.
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The complete question is probably
Write journal entries
12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.
Your boss has asked you to obtain marketing feedback on one of the products for your company produces. But people are less likely to respond honestly if they know it’s the company requesting the information. So your boss tells you to use a fake marketing research name. Would you follow your boss’s direction? Why or why not?
Answer:
no I won't follow my boss
because I don't use Fake information
A building is acquired on January 1, at a cost of $960,000 with an estimated useful life of 10 years and salvage value of $86,400. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)
Answer:
Year 1 - $192,000
Year 2 - = $153,600
Year 3 - $122,880
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2 x (1/10) = 0.2
Depreciation expense in the first year = 0.2 x $960,000 = $192,000
Book value at the beginning of year 2 = $960,000 - $192,000 = $768,000
Depreciation expense in year 2 = 0.2 x $768,000 = $153,600
Book value in year 3 = $768,000 - $153,600 = $614,400
Depreciation expense in year 3 = 0.2 x $614,400 = $122,880
I hope my answer helps you
DO you know what 407
Answer:
wdym wut 407
Explanation:
Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31
The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.
The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.For more questions on cost of goods sold (COGS)
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A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will yield an annual incremental after-tax income of $35,000 after deducting the straight-line depreciation. Compute the accounting rate of return for the investment.
Answer:
22.7 %
Explanation:
Accounting rate of return = Average Profits / Average Investments × 100
Where,
Average Profit = Sum of Profits ÷ Number of Years
= $35,000
and
Average Investment = (Initial Investment + Salvage Value) ÷ 2
= ($278,000 + $30,000) ÷ 2
= $154,000
Therefore,
Accounting rate of return = $35,000 ÷ $154,000
= 22.7 %
Wave Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the total fixed overhead variance.
Actual fixed overhead $ 36,000
Budgeted fixed overhead $ 27,000
Allocated fixed overhead $ 28,000
Standard overhead allocation rate $ 7.00
Standard direct labor hours per unit 2 DLHr
Actual output 2,000 units
a. $ 14,000 F
b. $ 10, 600 F
c. $ 14,000 U
d. $ 10, 600 U
Answer:
$9,000 U
Explanation:
Fixed Overhead Total Variance is the difference between actual and absorbed fixed production overheads during a period.
Fixed overhead variance = Actual Overhead - Budgeted Overhead
Fixed overhead variance = $36,000 - $ 27,000
Fixed overhead variance = $9,000 U
What is economic studies
Answer:
economic studies is about economic growth, strong labor market, sound fiscal and monetary policy.
If your manager were to give you a complex project that involved a lot of research and analysis to provide information to write a detailed and accurate report, how might you make it more manageable? What type of communication skills would that require? Please write at least 5 sentences.
A large project report can be easier to manage if the key components are first outlined as a thesis statement and the duties are divided into manageable chunks.
A report is what?A report is a written statement or document that outlines the major problems or happenings inside an organization and aids in understanding the internal and external forces at play.
It's crucial to have written communication abilities that enable someone with a strong vocabulary to precisely communicate the notion to the reader in order for a report to be effective and correct.
It is necessary to create an outline plan for the task that needs to be done since it aids in framing the report aspects when a project report requires extensive research and analysis to deliver information.
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If the world relative price lies somewhere between the autarky relative price of Home and the autarky relative price of Foreign, then: _____________
a. Only the country whose government subsidizes its exports will gain.
b. Home but not Foreign will gain from trade.
c. Neither Home nor Foreign will gain from trade.
d. Home and Foreign will both gain from trade.
When the world relative price lies somewhere between the autarky relative price, D. Home and Foreign will gain from trade.
What is a relative price?It should be noted that a relative price simply compares the price of a commodity in terms of another.
In this case, when the world relative price lies somewhere between the autarky relative price, both home and foreign will gain from trade.
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This section is based on the case study titled: Maximising Media Relations for Effective Program Execution: UNICEF in Nigeria. This case study is found under the lesson 3 folder, and copies are under the additional resources folder. Please answer all these questions and ensure that you use the correct numbering as given in the question itself.
1. According to the case study, what is the role of public relations? [4]
2. Who are the stakeholders in this case study and their interests [5]
3. What were the strategic tactics and techniques used in the campaign [6]
4. What research methodology was used to develop this plan and discuss whether the programme was successful or not successful in your perspective. Provide evidence from the case study to support your argument. [10]
5. “For effective media relations, the public relations practitioner must understand how the media function and how reporters work” – (Baskin et al, pp:179). As a public relations practitioner what is your assessment of the use of mass media
in this programme and was the use of mass media the best option vs social media in
the programme? (We want to see the student present their own argument here) [5]
6. What did you learn in this case study? [5]
UNICEF in Nigeria uses strategic strategies and approaches for stakeholder engagement to maximize media relations for effective program execution. Here are the responses to the prompts.
What about the case study?This case study highlights how essential public relations is when it comes to creating a positive image for an organization while building meaningful relationships with important stakeholders.
In this instance UNICEF was determined to raise awareness regarding their programs in Nigeria by engaging local community leaders while effectively communicating their message to citizens via media outlets. Conversely Nigerias government prioritized developing strategies which addressed citizens' needs coupled with enhancing its reputation. The stakeholders involved included: UNICEF representatives; Nigerian government officials; members of various influential media organizations; respected community leaders; as well as concerned members of society at large.
To implement effective strategies required tactical thinking alongside techniques such as holding press conferences/ interviews with key players in local/the national press corps; partnering with appropriate organizations/media personalities across identified relevant industries: e.g governance/community activism or where its most needed. Various research methods were employed inclusive of conducting situational analyses regarding media trends in Nigeria.
Also stakeholder analysis was crucial to identify key targets that helped achieve desired outcomes. The UNICEF program gained excellent traction among its target audience through effective outreach and significant coverage.
As a practitioner involved in public relations work I believe that incorporating mass communication was instrumental in broadening the scope for the advocacy messages and amplifying visibility around necessary programs run by UNICEF globally. Moreover using social media channels served as a valuable medium through which younger demographics could be successfully engaged while receiving personalized insights.
The case study has several vital implications regarding understanding regional media landscapes and establishing relationships with important players operating within the regions.
Collaborative partnerships between local communities alongside other organizations pursuing common goals can result in expanded outreach capacity leading towards new opportunities for positive change. Finally this multifaceted approach utilizing various channels became pivotal not only for generating better visibility but also raising awareness on issues championed by UNICEF globally.
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ANSWER QUICK: Share your ideas from the role of a key stakeholder who wants to settle the issue. Submit your ideas as a blog, a news report or other format of your choice.
Title: A Collaborative Approach: Settling Issues as a Key Stakeholder
Blog Post:
As a key stakeholder in resolving crucial issues, it is imperative to adopt a collaborative approach that fosters understanding, cooperation, and sustainable solutions. The following ideas outline a pathway towards settling issues through effective communication and collective decision-making.
Establish a platform for dialogue: Create a neutral space where all stakeholders can come together to express their concerns, ideas, and perspectives. This platform should encourage open discussions, active listening, and respectful exchanges.
Seek common ground: Identify shared goals and interests among the stakeholders. Emphasize the importance of finding mutually beneficial solutions that address everyone's needs and concerns.
Engage in constructive problem-solving: Encourage brainstorming sessions to explore innovative approaches and potential solutions. Foster an environment that values diverse viewpoints and encourages collaboration.
Foster transparency and information sharing: Ensure that all stakeholders have access to relevant information and data. Transparent communication builds trust and helps in making informed decisions.
Consider the long-term impact: Evaluate the potential consequences of proposed solutions on various stakeholders and the broader community. Prioritize sustainable and inclusive outcomes that promote long-term benefits.
Seek expert advice: Engage independent experts to provide insights and recommendations based on their specialized knowledge. Expert input can help inform decision-making and provide unbiased perspectives.
Monitor and evaluate: Establish mechanisms to track the progress of implemented solutions. Regular evaluation enables adjustments and ensures that the settled issue remains resolved in the long run.
By adopting a collaborative approach, key stakeholders can effectively settle issues by harnessing collective wisdom and striving for common goals. Together, we can build a foundation for sustainable progress and a harmonious future.
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t the end of the current year, the following information is available for both Pulaski Company and Scott Company. Pulaski Company Scott Company Total assets $ 2,276,500 $ 1,145,500 Total liabilities 882,500 576,500 Total equity 1,394,000 569,000 Required: 1. Compute the debt-to-equity ratios for both companies. 2. Which company has the riskier financing structure?
Answer:
0.63
1.01
Scott company
Explanation:
Debt to equity ratio is an example of solvency ratio.
Solvency ratios measure a firms ability to honour its long term financial obligation
The higher the debt to equity ratio, the higher the financial risk and the weaker solvency is
Debt to equity ratio = total liabilities to equity ratio
Pulaski Company : 882,500 / 1,394,000 = 0.63
Scott company : 576,500 / 569,000 = 1.01
which of the following will lead to increased investment? select all that apply: higher degree of business confidence lower interest rates decreased money supply decreased disposable income
Higher degree of business confidence will lead to increased investment.
Business Confidence:
Business Confidence describes how optimistic or pessimistic a company is about its current and future operating and financial conditions. Several factors influence it, including economic conditions, consumer confidence, demand, and operating conditions.
This business environment indicator provides information on future developments based on opinion polls on industry production, orders and finished product inventory developments. It can be used to monitor production growth and predict tipping points in economic activity.
Investment:
Investing is using money to buy an asset and increase its value over a period of time. Investing requires sacrificing your current wealth, Time, Money, or Effort.
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What are some benefits that the Shop Your Way Mastercard could provide to shoppers that ARE tied to rewards points, discounts, or saving money?
They are the competitive rewards of the benefits that the Shop way Mastercard could provide to shoppers that are tied to reward points, discounts, or saving money.
What is discounts?
The term discount refers to the provided the customer are the shopping in the bulk of the amount. The discount was to attract the customer to more shopping. The discount was the main reason are the shopkeeper are the earn more amount of the money.
According to the benefits of the shoppers are the used the master cards such as discounts, saving money and the reward points are they attract to the customer are the shopping more and more and the benefits are the competitive rewards.
As a result, the competitive rewards of the benefits that the Shop way Mastercard could provide to shoppers that are tied to reward points, discounts, or saving money.
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VIII. Victoria Rivera owns and manages a consulting firm called Prisek, which began operations on July 1. On July 31, the company's records show the following selected accounts and amounts for the month of July. Equipment $12000 Salaries expense$9000 Consulting revenue$36000 Cash $24000 Utilities expense$600 Note payable$7200 Accounts receivable$10500 V. Rivera, WithdrawalsYI$6000 Office supplies$4500 Rental revenue$1500 Advertising expense$1200 Prepaid insurance$3000 Accounts payable$3900 Note receivable$7500 Rent expense$6000 Unearned revenue$900.
Required
1. Prepare a July income statement for the business.
2. Prepare a July statement of owner's equity. The owner's capital account balance at July 1 was $0, and the owner invested $34,800 cash in the company on July 2.
3. Prepare a July 31 balance sheet. Hint: Use the owner's capital account balance calculated in part 2.
1. Total Revenue is $20,700.
2. Owner's Capital as of July 31 was $49,000.
3. The July 31 balance sheet shows assets of $61,500, liabilities of $12,000, and owner's equity of $49,500.
1. Income Statement for July:
$35,000. Consulting revenue
rental income of $1,500
Revenues totaled $37,500.
Salaries cost $9,000, so expenses total.
Expenses for utilities: $600
Cost of advertising: $1,200
Cost of rent: $6,000
Costs in total: $16,800
Total Revenue - Total Expenses equals Net Income.
$37,500 minus $16,800 is the net income.
2. Owner's Equity Statement for July:
Capital owned by Owner as of July1: $0
On July 2, the owner had invested $34,800.
$20,700 in net income
$6000 in owner withdrawals
Owner's Capital at July 31 is calculated as Owner's Capital at July 1 plus Owner's Investment plus Net Income minus Owner's Withdrawals.
Owner's Capital as of July 31 equaled $0 plus $34,800 plus $20,700 minus $6,000
3. July 31 The balance sheet
Assets:
$24,000 in cash; $10,000 in receivables
Inventories: $12,000
$4,500 for office supplies
$3000 in prepaid insurance
Amount Owed: $7,500
Assets in total: $61,500
Liabilities:
a payable note: $7,200
Accounts Payable: $3,900
Unearned Revenue: $900
Total Liabilities: $12,000
Owner's Equity:
Owner's Capital at July 31: $49,500
Total Liabilities and Owner's Equity: Total Liabilities + Owner's Equity
Total Liabilities and Owner's Equity = $12,000 + $49,500
Total Liabilities and Owner's Equity = $61,500
Therefore, the July 31 balance sheet shows assets of $61,500, liabilities of $12,000, and owner's equity of $49,500.
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5. What is the difference between your assets and your liabilities known as?
Answer:
The difference between your assets and your liabilities is known as either your profit or loss.
Answer:
assets are things that you might need, or are more important. Liabilities are things that are extra.
Explanation:
Project 1 requires an original investment of $55,000. The project will yield cash flows of $15,000 per year for seven years. Project 2 has a calculated net present value of $5,000 over a four-year life. Project 1 could be sold at the end of four years for a price of $38,000.
if we are solely considering financial profitability, we should choose Project 1 over Project 2.
How to compare?
To compare the profitability of these two projects, we need to calculate the net present value (NPV) of each project.
For Project 1:
Initial investment = $55,000
Annual cash flow = $15,000
Project life = 7 years
Using a discount rate of 10%, we can calculate the NPV of Project 1 as follows:
NPV = -$55,000 + ($15,000 / 1.10) + ($15,000 / 1.10²2) + ... + ($15,000 / 1.10²7)
NPV = -$55,000 + $11,051.29 + $10,046.63 + ... + $4,583.72
NPV = $4,291.64
For Project 2:
Net present value = $5,000
Project life = 4 years
We don't have information about the initial investment or annual cash flows for Project 2, so we cannot calculate its NPV directly.
However, we know that Project 1 could be sold at the end of four years for $38,000. If we assume that this is the market value of the project at that time, then the NPV of Project 1 after four years would be:
NPV = -$55,000 + ($15,000 / 1.10) + ($15,000 / 1.10²2) + ... + ($15,000 / 1.10^4) + $38,000 / 1.10²4
NPV = -$55,000 + $11,051.29 + $10,046.63 + ... + $6,889.36 + $27,874.04
NPV = $896.32
Based on these calculations, Project 1 has a higher NPV than Project 2. Therefore, if we are solely considering financial profitability, we should choose Project 1 over Project 2.
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Calculate the present values P of an annuity in which $10,000 is to be paid out annually for a period of 25 years, assuming an interest rate of 0.03. Round to the nearest dollar.
The present value of the annuity, which is the present worth of a series of equal payments, can be calculated by discounting each payment to its present worth. Annuity is $5,164.
To calculate the present value of an annuity, we use the formula:
\(PV = A / (1 + r)^t\)
where:
A = $10,000 (annual payment)
r = 0.03 (interest rate)
t = 25 (number of years)
Plugging in the values:
\(PV = $10,000 / (1 + 0.03)^25PV = $10,000 / 1.03^25PV = $10,000 / 1.945623065PV = $5,164.48\)
Rounding to the nearest dollar:
PV = $5,164
So, the present value of the annuity is $5,164.
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Calculate the present values P of an annuity in which $10,000 is to be paid out annually for a period of 25 years, assuming an interest rate of 0.03. Round to the nearest dollar?
EOQ Practice
Demand for item A is 40 units/week. You buy the item from a
supplier at a cost of $2.50/unit. The order cost is $80/order.
At present, you order 600 units at a time. If the annual
holding cost is 18% of item cost and the item is sold 50
weeks/year. Calculate the following:
. What is the total annual inventory cost at your current
order quantity of 600?
• What is the EOQ-i.e., the order quantity that minimizes
total annual cost?
• What is the total annual cost for the EOQ?
The total annual inventory cost is $1335, the EOQ that minimize the annual cost is $4000.05 and the total annual cost for EOQ is $1426240.05
What is the total annual inventory cost at current order quantity of 600a.
To calculate the total annual inventory cost at the current order quantity of 600, we first need to calculate the annual ordering cost and the annual holding cost:
Annual ordering cost: Since the demand is 40 units/week and the order quantity is 600 units, we will place 600/40 = 15 orders per year. So the annual ordering cost is 15 * $80 = $1,200.
Annual holding cost: The holding cost is 18% of the item cost, which is 18% * $2.50 = $0.45 per unit per year. The average inventory level is half of the order quantity (600/2 = 300 units). So the annual holding cost is 300 * $0.45 = $135.
Therefore, the total annual inventory cost at the current order quantity of 600 is $1,200 + $135 = $1,335.
b
To calculate the EOQ (economic order quantity), we can use the following formula:
EOQ = sqrt((2 * annual demand * ordering cost) / annual holding cost)
Plugging in the values, we get:
EOQ = sqrt((2 * 40 * 50 * $80) / $0.45) = 711111.11
So the EOQ is 711111 units (rounded up).
To calculate the total annual cost for the EOQ, we need to calculate the annual ordering cost and the annual holding cost at the EOQ:
Annual ordering cost: Since the demand is 40 units/week and the EOQ is 711111 units, we will place 711111/40 = 17777.77 orders per year. Rounded up to 17778 orders, the annual ordering cost is 17778 * $80 = $1422240.
Annual holding cost: The holding cost is still $0.45 per unit per year, but the average inventory level is half of the EOQ (17778/2 = 8889 units). So the annual holding cost is 8889 * $0.45 = $4000.05.
c.
Therefore, the total annual cost for the EOQ is $1422240 + $4000.45 = $1426240.05
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Suppose that the change in a product's price is 10%, and this causes an 8% change in quantity demanded. The product's demand elasticity is
The concept of demand elasticity is crucial for understanding the relationship between changes in price and changes in quantity demanded of a product.
In this scenario, we are given that the change in the price of a product is 10%, and this leads to an 8% change in the quantity demanded. We can use this information to calculate the product's demand elasticity.
Demand elasticity is the measure of the responsiveness of the quantity demanded of a product to changes in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. Therefore, in this scenario, the demand elasticity can be calculated as:
Demand elasticity = (% change in quantity demanded) / (% change in price)
Demand elasticity = (8% / 10%)
Demand elasticity = 0.8
The demand elasticity in this scenario is 0.8, which means that the product's demand is relatively inelastic. Inelastic demand means that changes in price have a relatively small impact on the quantity demanded of the product. This is because the percentage change in quantity demanded is less than the percentage change in price.
Overall, understanding the concept of demand elasticity is essential for businesses to make informed decisions about pricing strategies. In this scenario, the product's relatively inelastic demand suggests that changes in price may not have a significant impact on the quantity demanded, and businesses may need to consider other factors when deciding on pricing strategies.
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Annual maintenance costs for a particular section of highway pavement are $2,000. The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first five years and to $1,000 per year for the next five years. The annual maintenance after ten years would again be $2,000. If maintenance costs were the only savings, what is the maximum investment at the current time that can be justified for the new surface, with interest at 4%
An amount of $10,337 is the maximum investment at the current time that can be justified for the new surface.
Here, the Maximum investment equals the Present Worth of Benefits.
Maximum investment = $1,000 (P/A, 4%, 10) + $500 (P/A, 4%, 5)
Maximum investment = $1,000 (8.111) + $500 (4.452)
Maximum investment = $8,111 + $2,226
Maximum investment = $10,337
Hence, the amount of $10,337 is the maximum investment at the current time that can be justified for the new surface.
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From the case Ford Hybrid Car Case, by ARVIND RANGASWAMY
Develop forecasts of hybrid car penetration in the U.S. market from 2007 through 2016 for each scenario you develop, along with a justification and explanation for your forecasts. (In applying the Bass model, note that market penetration data for the three analog products mentioned in the case, namely, ABS, EFI, and Diesel cars, were all reckoned in terms of the percentage of the target market that adopted the product. Thus the maximum market potential can at most be equal to 100).
The forecasts of hybrid car penetration in the U.S. market from 2007 through 2016 for each scenario are Optimistic, Pessimistic and Realistic.
Scenario 1: Optimistic
In this scenario, I assume that the following factors will contribute to the growth of the hybrid car market:
Increasing awareness of the environmental benefits of hybrid carsGovernment incentives for purchasing hybrid carsContinued improvement in the performance and affordability of hybrid carsBased on these factors, I forecast that the market penetration of hybrid cars in the U.S. will reach 10% by 2016.
Scenario 2: Pessimistic
In this scenario, I assume that the following factors will hinder the growth of the hybrid car market:
High price of hybrid carsLack of charging infrastructureConsumer resistance to changeBased on these factors, I forecast that the market penetration of hybrid cars in the U.S. will reach only 5% by 2016.
Scenario 3: Realistic
In this scenario, I assume that the following factors will influence the growth of the hybrid car market:
A combination of the factors in the optimistic and pessimistic scenariosBased on these factors, I forecast that the market penetration of hybrid cars in the U.S. will reach 7% by 2016.
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Approximately interest rate to the nearest whole percentage would you need to earn in order to turn $3500 into $7000 over 10 years?
Answer:
Explanation:
FV = PV(1+i)^n
Where:
PV = 3,500
FV = $7,000
n = 10
i = ?
Now putting values in the formula:
$7,000 = $3,500(1+i)^10
2 = (1+i)^10
1+i = 2^0.1
1+ i = 1.071773463
i = 0.071773463 = 7.177%
Which statement best summarizes the role of businesses in the flow of
goods?
O A. Businesses provide natural resources to product markets.
B. Businesses consume goods produced by households.
C. Businesses offer goods and services to consumers.
D. Businesses sell goods that are created in product markets.
Answer:
the answer is C
You are a crude oil dealer. You intend to sell 40,000 barrels of crude oil in December. Each contract calls for delivery of 1,000 barrels of oil. Current futures price of one barrel of crude oil is $70. You believe that there are only four possible oil prices in December which are $50, $60, $70, and $80. i. Explain what action you would take to protect from changes in oil prices in December. Provide reasons for your action. ii. Calculate the total proceeds for each of the possible prices in December. Question 3 3 marks
Answer:
i. buy put option
ii. Proceeds will be as follows:
$50 : 2,000,000
$60 : 2,400,000
$70 : 2,800,000
$80 : 3,200,000
Explanation:
i. A put is option is one in which buyer of the option has a right to sell the asset at an agreed price at a later date. There can be a premium on the purchase of an option but its safe to buy an option to reduce risk exposure.
ii. $50 : 2,000,000 (40,000 barrels * $50)
$60 : 2,400,000 (40,000 barrels * $60)
$70 : 2,800,000 (40,000 barrels * $70)
$80 : 3,200,000 (40,000 barrels * $80)
You're a web developer for an online furniture retailer, and you've been having a debate with your boss, the marketing director. She's rejecting your proposal to invite customers' product ratings and reviews on the website because she's concerned that negative comments might discourage sales. You argue that customer feedback would enhance the ________ aspect of your customers' shopping experience.
Answer:
it will enhance the business aspect