Answer:
B) 15 decision variables, 8 supply/demand constraints.
Explanation:
To determine the number of decision variables all we have to do is multiply the number of groves by the number of processing plants = 3 x 5 = 15. There are 15 possible ways that oranges can go from one specific grove to one specific processing plant.
To determine the supply/demand constraints we add the number of groves (supply) and processing plants (demand) = 3 +5 = 8
Answer:
$19.95
Explanation:
Breakeven is where when total Cost = Total Revenue,
Let Selling Price = X
Total Revenue = Total cost
X*800 = 10,600+6.70*800
800x = 15960
Hence, selling Price(X) = 15960/800 = $ 19.95
Answer: $14,625
Explanation:
Based on the information given, if practical capacity is used to allocate cost, the cost that is allocated to shipping will be:
= Budgeted annual cost/200 × Number of shipping work stations
= 65000/200 × 45
= $14,625
Answer:
11.28%
Explanation:
Midwest fastener stock is expected to have a 16% booming economy
12% normal economy
-3% recession economy
The probability of an economic boom is 12%
The probability of a normal state is 80%
The probability of a recession is 8%
Therefore, the expected rate of return can be calculated as follows
= (return in booming economy×probability of boom economy)+(return in normal economy × probability of normal economy)+(return in recession economy×probability of recession economy)
= (16%+12%)+(12%+80%)+(-3%+8%)
= 192%+960%+(-24%)
= 192%+960%-24%
= 1,128%/100
= 11.28%
Hence the expected rate of return on the stock is 11.28%
Answer:
<u>the supply curve</u>
Explanation:
Remember the supply curve shows the relationship between the amount of a commodity that a producer (or orange farmer) is <em>willing </em>to offer and at a particular price at any given time.
Because of the subsidies to orange farmers we expect the price of orange to become lesser in the future. Therefore the rightward shift occurs in supply curve for oranges due to favorable changes such as the new legislation which may lead to:
- Reduction in tax,
- Reduction in cost of factor of production,
- Expectation of fall in price in future,
