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2 years ago

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Braden works alone at a very popular dog salon called "Pup-Style" which always has customers waiting for service. Each customer

requests Braden's signature "wash, dry, and style" package for their pet. It takes Braden exactly 10 minutes to wash and dry the pet and exactly 12 minutes to style. For all parts of this question, define the "process" for a single customer to begin once the customer hands over the pet for a wash and ends once the style is complete. Assume the process is operating at capacity.

1 answer:

vova2212 [387]2 years ago

6 0

Answer:

a. 1/22 customers per minute

b.1/12 customer per minute

c. 1/12 customer per minute

d.11/140 customer per minute

Explanation:

Check attachment for calculation

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Your uncle holds just one stock, East Coast Bank (ECB). You agree that this stock is relatively safe, but you want to demonstrat

g100num [7]

Complete question:

Assume that your uncle holds just one stock, East Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for West Coast Bank (WCB). Both banks have had less variability than most other stocks over the past 5 years.

Year ECB WCB

2004 40.00% 40.00%

2005 -10.00% 15.00%

2006 35.00% -5.00%

2007 -5.00% -10.00%

2008 15.00% 35.00%

a. What is the expected return and risk of each stock?

b. Measured by the standard deviation of returns, by how much would your uncle's risk have been reduced if he had held a portfolio consisting of 60% in ECB and the remainder in WCB? In other words, what is the difference between portfolio's standard deviation and weighted average of components' standard deviations? (Hint: check the example on page 11-12 on my note).

Solution:

The estimated return of the stock is the average profit.

So the average of ECB is (40-10+35-5+15)/5

= $\frac{75 percent}{5}$

= 15% expected return

WCB expected return = 40+15-5-10+35

= $\frac{75 percent}{5}$

= 15%

They've had the same planned return.

This is generally defined in the Greek letter Mu, (U) A weighted average may also be used to calculate portfolio volatility.

Standard deviation of ECB is $\sqrt{{ sum [(x-U)^2]/5}}$

so for ECB:

$(40-15)^2$ = $25^2$ =6.25%

$(-10-15)^2$ = $-35^2$ = 0.1225

$(35-15)^2$ = $20^2$ = 0.04

$(-5-15)^2$ = $-20^2$ = 0.04

$(15-15)^2$ =0

now 0.0625+0.1225+0.04+0.04+0=0.265

stdev= $\sqrt{(0.265/5)}$ = 0.23

So WCB is the same except in a different order to make things quick I'm only going to add the median again WCB=0.23

Then the 60/40 portfolio will be the "weighted average" of the returns.

portfolio returns

2004: (60%*40%)+(40%*40%) = 40%

2005: (60%*-10%)+(40%*15%) = 0%

2006: (60%*35%)+(40%*-5%) = 19%

2007: (60%*-5%)+(40%*-10%) = -7%

2008:(60%*15%)+(40%*35%) = 23%

we have an average return of (40+19-7+23)/5 = 75/5 =15%

The estimated return of all combined stocks is a better way to do so.

we knew they both had expected returns of 15% so we can say

(60%*15%)+(40%*15%)=15% so the portfolio has an expected return of 15%

Now we do the standard deviation for the whole portfolio and get

$(40-15)^2$ = $25^2$ =6.25%

$(0-15)^2$ = - $25^2$ =6.25%

$(19-15)^2$ = $4^2$ = 0.16%

$(-7-15)^2$ = $-22^2$ = -4.84%

$(23-15)^2$ = $8^2$ = 0.64%

now add them up and get 9.78%

$\sqrt{(9.78%/5)}$ = 13.98%

Therefore, the normal portfolio variance is 13.98 per cent and the predicted portfolio return is 15 per cent.

Every stock has a standard deviation of 23 per cent and an average return of 15 per cent, meaning that the fund has the same estimated return but with less standard deviation. This ensures that the same gain is less costly. It's stronger than any of these products.

5 0

2 years ago

Your newest coworker is not as productive as other members of your team. You and your coworkers have to work harder to make up f

BaLLatris [955]

Answer:

The correct answer would be option C.

Explanation:

If there is a new co worker hired in my office, and its her beginning days, and I, along with other team members see that she is not as productive as other members of the team are, and we all have to work more and harder to make up for her work. So i would preferably give her advice and tips for how to get things done correctly and efficiently. I would not like to get her out of the office, rather i will try to make her understand the things as soon as possible and give her tips to increase her work efficiency. But if the problem continues, and I believe that she will not be able to cope up with us, then i will talk to the supervisor and suggest him that she might not be the best role for us. But i will go with option C.

6 0

2 years ago

Read 2 more answers

EXERCISE 5-11 Missing Data; Basic CVP Concepts LO5-1 LO5-9 Fill in the missing amounts in each of the eight case situations belo

irina1246 [14]

Answer:

Explanation:

A) contribution per unit:

(180,000 - 120,000) / 15,000 = $4

B) net income: 180,000 - 120,000 - 50,000 = 10,000

C) units sold: contribution x units - fixed cost = income

$10 x units sold - 32,000 = 8,000

units sold: 4,000

D) variable cost:

(sales - expense) / units = contribution per unit

(100,000 - expense)/4,000 = 10

expense = 60,000

E) sales:

contribution x units + expense

10,000 x $13 + 70,000 = 200,000

F) fixed expense:

units x contribution - fixed = income

10,000 x $13 - fixed = 12,000

130,000 -12,000 = fixed = 118,000

H) contribution margin unit

contribution x units - fixed cost = income

6,000 x contribution - 100,000 = -10,000

contribution = 90,000 / 6,000 = 15

G) variable expenses:

sales = variable expense + contribution x units sold

300,000 = var expense + 15 x 6000

variable expense = 210,000

5 0

2 years ago

Whole Nature Foods sells a gluten-free product for which the annual demand is 5000 boxes. At the moment it is paying $6.40 for e

prisoha [69]

Answer:

the answer is =32291.67.

The firm should take the advantage of the new quantity as the total cost is lesser as compared with the old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.

Explanation:

Solution

Given that:

The Annual demand D = 5000 boxes

The Cost C = $6.4 per each box

The Carrying cost H = 25% of the unit cost = 0.25*6.4 = 1.6

The ordering costs S = $25.00

Now,

EOQ =√2DS/H

EOQ =√(2*5000 * 25)/1.6

Thus,

EOQ =Q = 395.28

The Total cost = DC + (Q/2)H + (D/Q)S

= 5000*6.4 + (395.28 /2) 1.6 + (5000/395.28)25

Then,

T = 32000 + 316.23 + 316.23

= 32632.46

So,

The new supplier has offered to sell the same item for the amount of $6.00 if Q = 3,000 boxes

Hence,

The total cost = 5000 * 6 + (3000/2)1.5 + (5000/3000)25

= 30000 + 2250 + 41.67

= 32291.67

Therefore, The firm should take the advantage of the new quantity as the total cost is lesser as compared with the old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.

7 0

2 years ago

Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,800,000 shares issued; Additional Paid-i

Fittoniya [83]

Answer:

Total Stockholder's Equity is $26,276,000.

Explanation:

Stockholders’ equity section of the balance sheet

Common Stock @ $1 $1,800,000

Additional Paid-in Capital, $1,6200,000

Retained Earnings, $9200,000

Less: Treasury Stock <u>$924,000</u>

Total Shareholders Equity $26,276,000

As treasury stock is the contra equity account so its value will be deducted from equity. So total Stockholder's Equity is $26,276,000.

6 0

2 years ago