Answer:
Option (a) is correct.
Explanation:
Contribution per unit:
= Selling price per unit - Variable cost
= Selling price per unit - (Material + labor cost)
= $25 - ($10 + $5)
= $25 - $15
= $10
Fixed cost = Administrative cost + Sales and marketing expense
= $60,000 + $20,000
= $80,000
Break-even quantity:
= Fixed cost ÷ Contribution per unit
= $80,000 ÷ $10
= 8,000 shirts
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 Shopping Products
Explanation: Shopping products are products that are not frequently requested and purchased. In purchasing these products, a consumer consciously weighs his options by comparing the suitability of the goods in meeting his needs.
The price and quality of the products are also determining factors for shopping products.
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:
The answer is: A) raises GDP.
Explanation:
If a gambler is a professional gambler (pays income tax on his gambling earnings) then when he moves from a state that prohibits gambling to a state that allows gambling, his earnings will increase the GDP.
The GDP only considers legal income, so illegal activities such as prostitution, drug trafficking, or illegal gambling are not included in the GDP. But if they become legal (e.g. some states legalized marijuana) then they should be included in the GDP.