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miss Akunina [59]
2 years ago
11

A product has a demand of 4000 units per year. Ordering cost is​ $20, and holding cost is​ $4 per unit per year. The​ cost-minim

izing solution for this product is to​ order:? A. 200 units per order. B. all 4000 units at one time. C. every 20 days. D. 10 times per year. E. none of the above
Business
1 answer:
lesya692 [45]2 years ago
7 0

Answer:

A. 200 units per order

Explanation:

To solve this you have to use the <em>economic order quantity</em> formula:

Q_{opt} = \sqrt{\frac{2DS}{H}}

Where:

Demand = 4,000

S= supply cost = ordering cost = 20

H= holding cost = 4

Q_{opt} = \sqrt{\frac{2*4000*20}{4}}

Economic Order Quantity = 200

<em><u>How to Remember:</u></em>

Demand per year and order cost goes in the dividend.

Holding cost goes in the divisor.

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If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of
horsena [70]

Answer:C. cash flow from operations may increase

Explanation:

A factoring system is one in which a firm sell his right to receive payments on it's receivable to a firm referred to as the factor as a discount in which the amount of discount represents the factor fees for taking up the risk.

The factor may be with or without recourse to the firm selling the receivable.

It's mostly entered into to reduce payment defaults and increase inflow of cash for operations.

The factor company does not need to be a consolidated company,it usually reduce the receivable and does not require a change in accounting principles.

4 0
2 years ago
b. When launching a new brand, we discussed in lecture that it is best to build the brand first with PR, and then sustain it wit
SashulF [63]

When launching a new brand, it is best to build the brand first with PR, and then with advertising is explained in the following way

Explanation:

In the past, almost every new brand was launched with a big advertising campaign. In today's media environment, that's not a good idea. Advertising is expensive and not very credible, especially when used on behalf of a new brand. That's why many of the most successful new brands were launched with PR.

Launching a new brand with PR, however, raises a number of questions.If no advertising agency is involved, who does the positioning strategy.

To stimulate your thinking about these ,here is an outline of six steps a PR launch might take.

1. The leak -A PR program usually starts with a leak to key reporters and editors. Internet sites are often favorite targets.

But no big brand has ever been successful in a category with no competition. The best thing that ever happened to Coca-Cola is Pepsi-Cola.

Not a good idea. The more competitors in a category, the larger the category. Competition creates enormous consumer interest in the category and stimulates a lot of PR.

Advertising is different. An advertising program is launched like a D-day attack. It's usually kept a top secret until the day the first ad runs.

It would have been better to let the PR run for a few months before launching the advertising. In turn, the ads could then focus on the success of the launch. (Nothing succeeds like success.)

2. The slow buildup

A PR program slowly unfolds like a flower blooming. A company has to allot enough time for the PR to develop momentum. That's why a PR launch often starts before the details of a new product or service are firmly fixed.

Advertising is different. An advertising program usually starts with a "big bang." Since consumers tend to ignore advertising messages, a new ad program needs to be big and bold enough to get above the "noise level."

3. The recruitment of allies

Why go it alone when you can get others to help communicate your message? The slow buildup of a PR program allows enough time to recruit allies to your cause.

Advertising is different. With a big-bang launch, there usually isn't enough time to line up supporters. Also, advertising alliances usually fall apart over the question of who pays for what.

4. Product modification

Feedback is an important element in a PR launch. By launching the PR program ahead of the actual product introduction, t

Advertising is different. Once a big-bang advertising program is launched, a company is committed.

5. Message modification

Feedback from a PR program also allows a company to modify the brand's message for greater consumer appeal.

6. The soft launch

PR versus advertising

In almost every way, the launch of a brand via PR is exactly the opposite of how a brand is currently launched with an advertising program.

5 0
2 years ago
Chester has negotiated a new labor contract for the next round that will affect the cost for their product City. Labor costs wil
Dmitriy789 [7]

Answer:

Find attached complete question:

Option A 1452 units

Explanation:

The increase in labor cost=$3.39-$2.89=$0.50

Half of the increase would reflect as increase in price i.e$0.25

Current price is $16

new price is $16+$0.25=$16.25

contribution margin =selling price -variable cost

currently units sold=$30,875/$16= 1,930

Current contribution per unit=$11,401/1930=$5.91

new contribution per unit would reduce by $0.25 i.e $5.91-$0.25=$5.66

breakeven in units=period cost/contribution margin per unit

period cost is $8346

breakeven units=$8346/$5.66=1475 units

The closest option is A 1452 units,the difference could be due to rounding error

Download docx
4 0
2 years ago
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the
Sphinxa [80]

Question:                                                                                                                                                                                                                                                                                  

If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.      

A) saving; increased  

B) population growth; decreased

C) depreciation; decreased

D) total output growth; decreased

Answer

The correct answer is  A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.

Explanation

Golden Rule Level of the Capital Stock is the level at which

MPK = δ,

Where MPK is Marginal Product; and δ the depreciation rate;

so that the marginal product of capital equals the depreciation rate.

In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .  

5 0
2 years ago
​when preparing a representative sample from a list of 200 customers who complained about errors in their statements, a _____ mi
makvit [3.9K]
Systematic sample

When preparing a representative sample from a list of 200 customers who complained about errors in their statements, this type of sample might select every tenth customer for review.
4 0
2 years ago
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