Answer:
The target inventory position is T= 713.6 gallons.
Explanation:
Given:
Average demand =per day = D = 152 Gallons
Standard deviation of demand = σ = 33 Gallons per day
Lead time for delivery = L = 4 days
Z value for 94.5% service level = 1.6
The target inventory position = (Average demand x Lead time) + Safety stock
= (D × L) + (Z× σ × 
)
= (152 × 4) + (1.6 × 33 × 
)
= (152 × 4) + (1.6 × 33 × 2)
= 608 + 105.6
= 713.6
Answer: Option (b) is correct.
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
The preferences of Pam, Pru and Pat are given. Therefore, according to their preferences, the opportunity cost of the trip to Hawaii for Pam and Pat is a cruise and for Pru is a skiing.
All that information gives you three points to make the graph.
Point 1:
At the price of $10, the offer is 2*1,000 shoes => (10, 2,000)
At the price of $25, the offer is 10*1,200 shoes => (25, 12,000)
At the price of $40, the offer is 10*1400 + 4*500 => (40, 16,000)
Then you have three points. You can check that their are not aligned because when you increase the price $15 from 10 to 25 the offer increases in 10,000 shoes; but when you increase the price $15 from 25 to 40, the offer increases 4,000.
To draw the grpah:
- use a perpendicular coordinate system with the price in the horizontal axis and the offer in the vertical axis,
- lable the horizontal axis with the prices from 10 to 50 and the vertical axis with the offers from 1,000 to 18,000.
- draw the three calculated points (10; 2,000) , (25; 12,000) and (40; 16,000)
- draw a curved line that passes through the three points.
Ther you have the graph.
Answer:
Increases the number of surprises faced by the market concerning the company's stock.
Answer:
Using the adjusted balances, give the closing entry for the current year.
Explanation:
1
Db Insurance expense 6000
Cr Prepaid expenses 6000
2
Db Wages payable 4000
Cr Cash 4000
3
Db Depreciation expense 9000
Cr Accumulate depreciation 9000
4
Db Income tax expense 7000
Cr Tax payable 7000
