The answer would be:
the employees supervisor.
Hope this helps
Answer:
The answer is a. 14.33.
Explanation:
We apply the net present value (NPV) methodology to approach the two options.
+ The lifetime subscription's npv = $(850)
+ The annual subscription's npv = - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], with n is the number of years the subscriber still lives.
To make a lifetime subscription a better buy, the NPV of this option should be higher than the NPV of annual subscription or:
85 + [ 85/6% * [ 1 - 1.06^(-n) ] > 850 <=> 1 - 1.06^(-n) > 0.54 <=> 1.06^(-n) < 0.46 <=> -n < -13.33 <=> n > 13.33.
So, the subscriber should live more than 14.33 years ( 13.33 + 1 years for another next year subscription) to make the lifetime subscription a better choice.
So, a is the correct choice.
Answer:
The company should process the units further.
Explanation:
Base on the scenario been described in the question, we can be able to use the method to prepare an analysis that shows whether the 28,000 units of Product A should be processed further or not.
Sell as is Process
further
Sale as is (28,000 units x $25.00) $700,000
Process further (5,600 units x $105) + (11,200 x $70) $1,372,000
Cost to process further (420,000)
Incremental income (loss) $700,000 $952,000
The company should process the units further
Answer:
The total economic cost is $40,500 per year
Explanation:
The total economic cost per year is equal to the sum of:
* The opportunity cost relating to sacrificing the current work Greg is working on which is equal to his yearly salary of : $40,00.
* The opportunity cost relating to sacrificing the interest income earned on $10,000 saving, which he is now used for purchasing equipment, which is calculated as: 10,000 * current rate of savings = 10,000* 5% = $500 ( total cost of equipment is not included because e could sell the equipment for what he paid later on).
=> So, total economic cost per year is $40,000 + $500 = $40,500.
Answer:
Total cost = Total ordering cost + Total holding cost
Total cost = DCo + QH
Q 2
Where
D = Annual demand
Co = Ordering cost per order
Q = EOQ
H = Holding cost per item per annum
D = 40,000 units
Co = $48
H = 18% x $8.00 = $1.44
EOQ = √2DCo
H
EOQ = √2 x 40,000 x $48
$1.44
EOQ = 1,633 units
Explanation:
EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.
