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Irina18 [472]
2 years ago
4

In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazine

s. In 2006, a sandwich cost $4 and a magazine cost $2. In 2007, a sandwich cost $5. The base year is 2006. If the inflation rate in 2007 was 16 percent, then how much did a magazine cost in 2007?
Business
1 answer:
Arisa [49]2 years ago
5 0

Answer:

A magazine cost $2.08 in 2007

Explanation:

Let x be the cost of a magazine in 2007

Inflation rate 16% means 2007 CPI is 116

2006 is base year then 2006 CPI is 100

=> \frac{Cost\:of\:basket\:in\:2007}{Cost\:of\:basket\:in\:base\:year\:2006} = \frac{116}{100} (a)

Cost of basket in 2006 = 20*4 + 30*2 = $140

Cost of basket in 2007 = 20*5 + 30*x = 100 + 30x

Plug into (a): (100+30x)/140 = 116/100

=> 100+30x = 162.4

=> x = 62.4/30 = 2.08

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An automobile dealer expects to sell 1250 cars a year. The cars cost $9000 plus a fixed charge of $1000 per delivery. If it cost
Brilliant_brown [7]

Answer:

Order size = 50 cars

The number of orders=25

Explanation:

<em>The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.  </em>

It is computed using the formulae below  

EOQ = √ (2× Co× D)/Ch  

Co- Ordering cost, Ch- Carrying cost - D- Annual demand  

EOQ= √2× 1000× 1250/1000= 50

Number of cars to be ordered per time, i.e optimal order size= 50 cars

Order size = 50 cars

b)

The number of times orders should be placed per year would be calculated as follows:

The number of orders = Annual demand/ order size

The number of orders= 1250/50 = 25

The number of orders=25

4 0
2 years ago
"Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of fact, cooking was her passion and she always
sergejj [24]

Answer:

The correct answer is letter "A": Modify.

Explanation:

The SCAMPER approach is useful when analyzing how to implement new ideas into existing products or services. SCAMPER stands for <em>Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, </em>and <em>Reverse</em>.

The Modifying function implies asking questions such as "<em>What could you add to modify this product</em>?" or "<em>What element of this product could you strengthen to create something new</em>?" which looks for spotting lacking features of products to improve them according to consumers' preference.

Thus, <em>by deciding to change the spices of Indian traditional food for less spicy ingredients to fit Americans' food habits, Rashmi is using the modifying component of the SCAMPER tool.</em>

8 0
2 years ago
You are the manager in charge of setting the strategy for a new frozen yogurt company. Which of the following questions would be
AfilCa [17]

Answer:

B) How have consumer preferences in frozen yogurt flavors changed in the last five years

Explanation:

During the analysis phase of the AFI strategy framework we need to evaluate that how have consumer preferences in frozen yogurt flavors changed in the last five years. Since we know that AFI framework analysis we seek the planning analysis, formulating and implementation. Companies always go back to reassess their strategy based on changes in the environment.

7 0
2 years ago
Summers, Inc., has net income of $50 million in the current year. Stockholders’ equity at the beginning and the end of the curre
vovikov84 [41]

Answer:

ROE = 33.33%

Explanation:

<em><u>return on equity:</u></em>

\frac{income}{average \: equity}

<em><u>where:</u></em>

Average equity

$$(beginning + ending equity) \div 2

(140 + 160) / 2 = 150

return on equity : 50 / 150 = 1/3 = 0.3333 = 33.33%

The ROE measures the effectiveness of the managers to generate profit with their current net assets(equity)

This ROE of 33.33% rrepresent that for every dollar of equity the company generates 33 cents of income

5 0
2 years ago
Consider this information about an activity: es = 12, ef = 18, ls = 14, lf = 20. what is the amount of slack associated with thi
Julli [10]
<span>The slack can easily be explained as the difference between latest start (ls) and earliest start (es) of an activity. As the above example, we can easily now calculate slack as the follow: slack = LS - ES or LF - EF So, the correct answer will be LS - ES = 14 -12 = 2 or LF - EF = 20-18 = 2 So, the slack associated with this activity is 2.</span>
3 0
2 years ago
Read 2 more answers
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