Answer:
His maximum inventory level would be 180 units
Explanation:
According to the given data we have the following:
daily demand rate , d=1,600/200=8 units;
daily production rate p=80 units;
C0=25 dollar
Cc=2 dollar
Therefore, Qopt=√2*25*1,600/(2(1-8/80))
Qopt=210.82
But here Rolf decide to produce 200 units each time he started production, hence fix Q=200
Therefore, Maximum inventory level=200*(1-8/80)=200*0.9
Maximum inventory level=180 units
His maximum inventory level would be 180 units
Answer:
Correct Answer:
E. fewer substitutes are available because consumers are more sensitive to prices.
Explanation:
<em>Market power is the ability of a company to successfully influence the pricing of its products or services in the overall marketplace. </em><em>This is common among most big corporations that produces consumer goods and offer services. </em>
This market power can be influenced by some factors. On the other-hand, the market power could be eroded leading to inability of the companies to influence prices do to the following:
1.<u> Number of companies in the market:</u> The lower the companies producing same product in the market, the higher the chances of the companies to be able to influence market prices. Otherwise, the market power will be eroded due to high number of companies.
2. <u>Elasticity of demand:</u> The persistent demand of a product by people helps to determine the market power of those companies. When this is lacking, the market power is eroded.
3. <u>Product differentiation:</u> The ability of a company to provide a unique product that offers good services in a market helps it to achieve market power. Lack of these erodes the market power.
Answer:
(d) All of the above responses are correct
Explanation:
The Capital asset pricing model (CAPM) helps in calculation of expected rate of return by an investor which is dependent upon risk premium and beta.
Beta refers to sensitivity of return from stock with respect to the market return.
Risk premium refers to the additional rate of return which an investor must be provided so as to compensate him for additional risk he assumes.
ER = Rf + β (Rm- Rf)
ER= Expected Rate Of Return
Rf= Risk Free Rate of Return
Rm= Return from market
β = sensitivity index of security return to market return
Security Market Line (SML) is a graphic representation of CAPM.
Thus, (d) is the correct option
Answer:
$4,400,000
Explanation:
Cash Pledged $2,000,000
Treasury bill due in one month $2,000,000
Cash in checking account $400,000
Cash and Cash Equivalents $4,400,000
Please note that treasury bill due after 90 days or maturing after 90 days are not considered cash equivalents.
Answer:
Dr interest expense $7,000
Dr notes payable $7,238
Cr cash $14,238
Explanation:
The first task is to compute interest expense on the loan in year 1 which is shown below:
interest expense=$100,000*7%
interest expense=$7,000
Principal repayment=repayment-interest repayment
Principal repayment=$14,238-$7,000=$7,238
The double entries are to debit interest expense and notes payable with $7,000 and $7,238 respectively while cash is credited with $14,238 as an outflow of cash.
