Answer:
$4,372.71
Explanation:
Here for reaching the difference in PV between the first and the second offer first we need to follow some steps which is shown below:-
Step 1
Total payment due = Per tire × Bought tires
= $80 × 600
= $48,000
Step 2
Present value factor of 8.4% for 1 year = 1 ÷ (1 + Rate of interest)^Number of years
= 1 ÷ (1 + 8.4%)^1
= 1 ÷ (1 + 0.084)^1
= 1 ÷ 1.084
= 0.92251
Step 3
First offer
Present value = Total payment due × Present value factor of 8.4% for 1 year
= $48,000 × 0.92251
= $44,280.48
Step 4
Second offer
One year payment = Bought tires × Per tire
= 600 × $45
= $27,000
Step 5
Present value = One year payment × Present value factor of 8.4% for 1 year
= 27,000 × 0.92251
= $24,907.77
Step 6
Total present value = Present value of second offer + Tires cost
= $24,907.77 + $15,000
= $39,907.77
Here we can see that first offer is higher than second offer
So,
The difference between the first and the second offer = First offer - Second offer
= $44,280.48 - $39,907.77
= $4,372.71
Answer:
Form wizard
Explanation:
In microsoft access, form wizard is a menu that user can choose to create forms with specific adjustment rather than pre-determined design in the normal form option.
Using form wizard, User can select the fields that he/she wants to include and letting you determine how the data is sorted and grouped.
Answer: The risk of stock out = 2.94%
Explanation:
Reorder point is calculated as: Lead time*demand per unit time=45*9=405
While the amount on-hand reaches 422 pounds, the manager was reordering lubricant.
During the lead time, Standard Deviation of Demand =Daily S.D*(Lead time)^0.5=3*(9^0.5)=9
Risk of Stock Out=(422-405)/9 S.D=1.89 S.D
From Normal distribution curve 1.89 S.D=0.0294=2.94%
Therefore, the risk of stock out=2.94%
Answer:
The correct answer is letter "B": Variation in both demand and lead time exists, and is known.
Explanation:
The Economic Order Quantity (EOQ) is a method to keep track of inventory based on several assumptions. According to the EOQ <em>demand is known, constant and independent; lead time is known and constant</em>; inventory receipts are immediate and complete; discounts on amounts are not feasible; and, stock-outs can be avoided absolutely.
Answer:
<u>The correct answer is that Rachel's workshop total cost is US$ 5,700 per month and US$ 19 of average cost per unit sold every month.</u>
Explanation:
<u>1. Rachel's workshop monthly costs</u>
Rent US$ 600
Salaries US$ 3,600
Insurance premium US$ 300
Raw materials US$ 1,200
<u>Total monthly costs US$ 5,700</u>
<u>2. Rachel's workshop average monthly costs</u>
Number of units sold per month = 300
Average monthly costs = Total monthly costs/Number of units sold
Average monthly costs = 5,700/300
<u>Average monthly costs = US$ 19</u>
