Answer:
Increased
Explanation:
In the case when there is a fall in the potential output and at the same time the actual output remains the same so here the fund rate should be increased as per the taylor rule as it decrease the output that result in the output gap to fall
So as per the given situation, the fed fund rate should be increased
Hence, the same is to be increased
Walt performs the steps below while saving Excel file “My Data.”
Click File → Click Save As → Choose Text (Tab delimited) → Click Save
What is Walt most likely trying to do with the Excel file?
A export data from the Excel file to a Notepad file
B export data from a Notepad file to the Excel file
C import data from the Excel file to an XML data file
D import data from an XML data file to the Excel file
Answer:
A. export data from the Excel file to a Notepad file
Explanation:
The MOST common method of distributing funds provided by a construction loan is a:Single lump sum of money at the closing of the loanSingle lump sum of money at the end of the construction project to reimburse the developer for the project's expenses and profitSeries of payments throughout the construction project to reimburse the developer for costs incurred since the previous paymentSeries of payments throughout the construction project to reimburse the developer for anticipated expenses in the upcoming period
Answer:
Series of payments throughout the construction project to reimburse the developer for costs incurred since the previous payment
Explanation:
The common method for allocating the funds that are given by the construction loan is that the payment series via the constuction project in order to reimbursed it for the developer as the cost is spend because of the last payment made
Therefore as per the given situtation, the third option is correct
The rate that a company must pay to obtain funds from creditors and stockholders is known as the Select one: a. hurdle rate. b. cost of capital. c. cutoff rate. d. All of these answers are correct.
Answer:
B)cost of capital.
Explanation:
In economics as well as accounting, the cost of capital can be regarded as
cost of funds of a company i.e debt and equity. From investor's point of view it can be regarded as rate of return required on a company existing securities portfolio, and this is utilized I evaluation of new projects of a company. It should be noted that the rate that a company must pay to obtain funds from creditors and stockholders is known as cost of capital..
SwiftyCompany is considering two capital investment proposals. Estimates regarding each project are provided below:
Project Soup Project Nuts
Initial investment $380000 $492000
Annual net income 30000 46000
Net annual cash inflow 110000 146000
Estimated useful life 5 years 6 years
Salvage value 0 0
The company requires a 10% rate of return on all new investments.
Present Value of an Annuity of 1
Periods 9% 10% 11% 12%
5 3.89 3.791 3.696 3.605
6 4.486 4.355 4.231 4.111
The cash payback period for Project Nuts is:________.
a. 4.75 years.
b. 12.67 years.
c. 3.37 years.
d. 6.23 years.
Answer:
d
Explanation:
summer nights sells bottles of bug spray for 9.00 eaqch variable costs are 3.00 per bottle while fixed costs are 50000 per month for volumes up to 40,000 bottles of spray and 59000 per month for volumes above 40,000 bottles of spray. The flexible budget would reflect monthly operating income for 18,000 bottles of spray 33,000 bottles of spray of what dollar amounts
Answer: $58000; $148000
Explanation:
Sales = 18000 × $9.00 = $162000
Less: Variable cost = 18000 × $3 = $54000
Contribution margin = $108000
Less: Fixed cost = $50000
Operating income = $58000
Sales = 33000 × $9.00 = $297000
Less: Variable cost = 33000 × $3.00 = $99000
Contribution margin = $198000
Less: Fixed cost = $50000
Operating Income = $148000
Back to Assignment
tudy Tools
Attempts 13
Keep the Highest 13/3
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5. Problems and Applications Q9
5
s Tips
A farmer grous wheat, which she sells to a miller for $80. The miller turns the wheat
into flour, which she sells to a baker for $120. The bakers
the heat into bread, which she sells to consumers for $140. Consumers eat the bread.
3 Tips
Assume that these transactions account for all economic activity in this economy.
GOP in this economy is 5
ra FREE 7-
Unlimited
Limited
value added is defined as the value of a producer's output minus the value of the intermediate goods that the producer buys to make the output
re
Ansuring there are no intermediate goods beyond those just described, complete the following table by calculating the value added for each of the
three producers. Then enter the total value added in the final row.
Value Added
Producer
Dollars)
Answer:
only 5 point.................
When reviewing the performance appraisals for the marketing department, the HR manager found what appeared to be leniency errors, as most employees received similar ratings that were above average. Going forward, raters are going to be required to use a forced distribution, as this will reduce the chance of leniency or strictness errors.
a. True
b. False
True Is the Answer dear....
It is true that raters are going to be required to use a forced distribution when reviewing the performance appraisals of marketing department by HR manager.
What is performance appraisal?This is a process of evaluating how well an employee has performed in an organization and in line with the employee's key performance indicator.
The aim of perfomace apprailsal for the organization to know whether or not an employee abide with the indicators set by the company.
Hence, It is true that raters are going to be required to use a forced distribution when reviewing the performance appraisals of marketing department by HR manager.
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(CRM) system uses customer contact information for targeted _____. a. management b. inventory control c. marketing d. budgeting
Answer:
c. marketing
Explanation:
CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, this employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.
This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving customer service, sales support, marketing communications, and technical assistance, so as to bring satisfaction to the customers and increase sales for the company.
Typically, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.
Hence, CRM system uses customer contact information for targeted marketing such as sending weekly letters, promotional messages, survey, etc.
In 2009, Winn, Inc. issued $1 par value common stock for $35 per share. No other common stock transactions occurred until July 31, 2011, when Winn acquired some of the issued shares for $32 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?
a. 2018 net income is decreased.
b. Additional paid-in capital is decreased.
c. 2018 net income is increased.
d. Retained earnings is increased.
Answer: b. Additional paid-in capital is decreased.
Explanation:
Assume Winn sold 100 shares.
The entry would have recorded Common stock at $100 because the par value is $1.
Additional paid-in capital would have been:
= (35 - 1) * 100
= $3,400
When the stock was now required, it was required at $32. Assuming 50 were reacquired:
Common stock would be = 100 - 50 = $50
Additional paid-in capital would be = 3,400 - ((32 - 1) * 50) = $1,850
Additional paid-in capital would therefore decrease when the shares are reacquired.
Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter
Required:
1. Calculate the estimated cost of workers' compensation insurance for the year.
2. Show the journal entry for the first quarterly payment on January 2, 20.
3
a. Assume Ryan's actual payroll for the year was $89,000. Calculate the additional premium owed for 20--.
b. Assume Ryan's actual payroll for the year was $89,000. Record the adjustment needed on December 31, 20--. The actual payment of the additional insurance premium will not take place until January of the following year.
Answer:
Following are the responses to the given choice:
Explanation:
Please find the solution in the attached file.
Herman Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2009. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Herman uses the straight-line method of amortization.
What is the carrying value of the bonds on January 1, 2011?
a) $200,000
b) $190,800
c) $197,700
d) $189,650
In accounting for a defined benefit pension plan:______________.
A. the expense recognized each period is equal to the cash contribution.
B. an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised.
C. the employer's responsibility is simply to make a contribution each year based on the formula established in the plan.
D. the liability is determined based upon known variables that reflect future salary levels promised to employees.
Answer:
C. the employer's responsibility is simply to make a contribution each year based on the formula established in the plan.
Explanation:
A defined benefit pension plan is one that promises an employee that a particular amount of money will be paid to them on retirement. As far as they make contributions based on a formula that takes into consideration age, tenure, and earning history.
So the main responsibility of the employee is to simply make a contribution each year based on the formula established in the plan.
The benefit to be gained remains defined.
On the other hand a defined contribution plan is one that is dependent on the amount that is being contributed by the employee.
Benefits to be paid out will depend on the amount collected before retirement.
Which of the following best describes the "invisible hand" concept? Group of answer choices Ample regulation of business by the government will maximize the public's best interests. The market system works best when resources are free to move from one use to another. The problem of scarcity can best be overcome in a system of mixed capitalism. Self-interest in a market system will automatically promote the public interest as well
Answer:
Self-interest in a market system will automatically promote the public interest as well.
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.
Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.
The "invisible hand" concept asserts that the self-interest by producers and suppliers of resources in a market system will automatically promote the public interest as well.
This ultimately implies that, public and private interest will always coincide assuming there exist competition in a free market system.
In conclusion, the invincible hand concept is a metaphorical description of the unforeseen forces that typically moves a free market system or economy.
The best description of the "invisible hand" concept is: "Self-interest in a market system will automatically promote the public interest as well."
What is the concept of "invisible hand"?The concept of the "invisible hand" is often associated with Adam Smith, a renowned economist and philosopher. According to Smith's theory, individuals pursuing their own self-interest in a competitive market will unintentionally benefit society as a whole.
Through the pursuit of profit and self-gain, individuals are motivated to produce goods and services that meet the needs and desires of others in the market. As a result, the market system, when left to its own devices, is believed to allocate resources efficiently and maximize overall societal welfare.
This concept implies that government intervention and regulation may not be necessary for the market to function optimally. Instead, the "invisible hand" suggests that individual self-interest, guided by market forces such as supply and demand, will naturally lead to desirable outcomes for society.
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Karen, a driver for Domino's Pizza, leaves the truck's motor running in neutral and carelessly forgets to set the parking brake while she makes a delivery. The truck moves forward and crashes into a nearby electrical pole igniting a fire that spreads quickly to a construction site a block away. A burned wall collapses onto a crane, which falls on Frank, a bystander, and injures him.
Required:
What must Frank show to recover damages from Domino's for the tort of negligence
Answer:
The answer is given in detail below.
Explanation:
In the negligence case, the damages would be recovered if Frank (injured party) as a plaintiff would be able to prove that the Company's driver (Karen) owed him a duty of care, that the duty was breached by the company's driver, that the plaintiff (Frank) was injured and that the injury was caused due to the breach of the duty of care.
In the following case, the crane falling on Frank was the reason for his injury. Therefore, to prove that the duty of care was breached, Frank would have to connect the breach to the injury caused to him. This would require doing the foreseeability test, which questions the fact that the person who caused the injury could have reasonably foreseen the results of the action caused by them due to his or her misconduct. In this problem, the company's driver did breach the duty of reasonable care.
Department stores have increasingly used designer boutiques to highlight specific designers to small market segments. This strategy most closely resembles that of which retail institution
Answer:
Specialty Store
Explanation:
A specialty store is a store where it keeps the high brand, style or models having the narrow category of goods and services. The products like furniture, sporting goods, bookstores are categorized as the speciality stores.
Since in the given situaton, it is mentioned that the stores increase the usage of the designer boutique for highlighting the particular designers for the small market so this represent the speciality store of that retail institution
The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity
Answer and Explanation:
The computation of the nominal, periodic, and effective interest rates for this investment opportunity is shown below:
The Nominal rate is 4.40%
The Periodic rate is = 4.40% ÷ 4 = 1.10%
And,
The Effective annual rate is
= (1+1.10%)^4 - 1
= 4.473%
hence, the same is relevant
Finance
Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company
ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm 8is planning dividend payout ratio of 60%. Calculate:
a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.
b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decisionm
[2] R6 386,16.
[3] R1 930,43.
[4] R3 897,29.
[5] none of the above
Checking answer$1
Financial Math
Q198898
Deadline passed
Mr Mahlangu invests R20000 to play lobola. After 48 months he receives 65000. The interest on the investment is compounded quarterly. Determine the yearly interest rate at which money was invested. Give your answer as a percentage rounded to two decimal places.
Checking answer$1
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Biochemistry
Q198087
Deadline passed
11. Indicate which type of bonds are involved in the following
a. Formation of the primary structure of a protein
b. Stabilization of the alpha helix and beta pleated sheet structures of proteins
12.Identify the biomolecular composition of the following cells
a.Endoplasmic reticulum
b.Mitochondria
c.Cytoskeleton
d. Nucleus
13 Under aerobic catabolism of glucose ,in which compartment of the eukaryotic cell does the following reaction occurs?
a conversion of pyruvate to acetyl CoA
b.conversion of succinyl -CoA to succinate
c.conversion ofNADH to ATP.
d.conversion of phosphologlycerate to phosphoenolpyruvate.
14. Briefly outline how ATP is generated from glucose in the absence of oxygen. What is the importance of this pathway?
15. Briefly explain the process by which excess dietary carbohydrates and lipids are stored in the human body
Answer approved2$1
Finance
Q199880
Deadline: 28.05.21, 18:48
Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company
ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm is planning dividend payout ratio of 60%. Calculate:
a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.
b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether
dividend is to be declared or not.
Answer:
An apple, potato, and onion all taste the same if you eat them with your nose plugged≡⇵∠⊅↓⇆°∞∴∴∵∵∵∴∴∵∵∴∴∵∴
∴∴≈↓∴↔∪∪∩⇄
Explanation:
Marshall Manufacturing issues a $1,000 bond with an interest rate of 10%, and a maturity date of 2031. This creates a liability for Marshall Manufacturing to pay the bondholder: a. an interest payment equal to the dividend payment distributed to the common stockholders. b. $1,100 annually until the year 2031. c. 10% of the selling price of the bond. d. $100 interest per year and $1,000 in the year 2031.
Answer:
The correct option is d. $100 interest per year and $1,000 in the year 2031.
Explanation:
Bond can be described as a financial instrument showing that certain amount of money is being owed to the holder. The bondholder has to be paid periodic interest at a specific rate and bond value has to paid back to the holder at the maturity date.
From the question, we have:
Bond value = $1,000
Interest rate = 10%
Maturity date = 2031
Therefore, we have:
Interest per year = Interest rate * Bond value = 10% * $1,000 = $100 per year
This implies that this creates a liability for Marshall Manufacturing to pay the bondholder $100 interest per year and $1,000 in the year 2031.
Therefore, the correct option is d. $100 interest per year and $1,000 in the year 2031.
On April 1, 2019, Waterway Industries purchased new machinery for $480000. The machinery has an estimated useful life of five years, and depreciation is computed by the sum-of-the-years'-digits method. The accumulated depreciation on this machinery at March 31, 2021, should be
Answer:
$288,000
Explanation:
Sum-of-the-years'-digits method provide for higher depreciation to be charged early in the life of the asset with lower depreciation in the later year.
Sum of digits = 5 + 4 + 3 +2 +1 = 15
2020
Depreciation = 5 / 15 x $480000
= $160,000
2021
Depreciation = 4 / 15 x $480000
= $128,000
therefore,
Accumulated depreciation = $160,000 + $128,000 = $288,000
thus
The accumulated depreciation on this machinery at March 31, 2021, should be $288,000.
____________ is the process of identifying and assessing the volume and sentiment of what is being said about a company, individual, product, or brand. Digital marketing Visual analytics
Answer:
d) Social media monitoring
Explanation:
Social media monitoring includes the tracking of brand i.e. online and the responses also. You should check and keep your brand on the top of the message prior it become viral for the reason i.e. not right. Also it would help in maintaining the positive brand between the consumers and influencers
So, as per the given situation, it is a social media monitoring
Normative and positive statements
The following table contains statements that provide some analysis of policies that address taxes. Categorize each of these statements as either positive or normative.
Statement Positive Normative
Taxes are too high.
In some circumstances, if taxes are lowered,
government revenues actually increase.
It is immoral for a government to redistribute money
from one person to another.
When the government increases taxes, rates of
tax evasion increase.
Answer:
Normative
Positive
Normative
Positive
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, the statement , In some circumstances, if taxes are lowered,
government revenues actually increase, can be tested and it has it basis in economic theory
Normative economics is based value judgements, opinions and perspectives. For example, the statement - taxes are too high - is based on opinion. To some it is too high while to others it would be too low
Swifty Corporation has the following budgeted sales: January $30000, February $90000, and March $50000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are:
Answer:
Total cash collection= $62,000
Explanation:
Giving the following information:
40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month.
Sales:
January $30000
February $90000
March $50000
Cash collection March:
Sales in account February= (90,000*0.6)*0.5= 27,000
Sales in account March= (50,000*0.6)*0.5= 15,000
Sales in cash March= (50,000*0.4)= 20,000
Total cash collection= $62,000
Gains from trade are the: Multiple Choice increase in welfare in both countries that results from specialization and trade. transfer of surplus by the receiving country that results from trade. deadweight loss by the losing country that results from trade. increased skills and human capital that results from specialization and trade.
Answer:
The answer is "the increase in welfare in both countries that result from specialization and trade".
Explanation:
Commercial gains imply benefits that are benefitted by specialization and division of work from various countries participating in international trade.
Its profits of trade are the positive benefits of trade instead of creating, meaning as advantage benefits via trade rather than producing advantage oneself.
The whole form of profit is usually called gain. Those gains are indeed the advantages of shifting production factors.
Static trade gains:
Production maximisationNational income increaseIncreased social securityReduced cost of scale savingsEnhanced variety of productsExcess shedding14. On January 1, Nick Co. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years. The productive life of the truck is estimated to be 100,000 miles. During the first year, the truck was driven 19,000 miles. Nick uses the double-declining balance method of depreciation. What amount of depreciation expense should Nick record for the first year
Answer: $12000
Explanation:
The amount of depreciation expense that Nick should record for the first year will be:
The depreciation will be:
= 1/no. of years
= 1/10
= 10%
Then, the rate of depreciation for double-declining will be:
= 10% × 2
= 20%
Then, the depreciation for the first year will be:
= $60000 × 20%
= $60000 × 0.2
= $12000
Therefore, the amount of depreciation expense that Nick should record for the first year is $12000.
Depreciation expense should Nick record for the first year is $12000
Which of the following is a common role adjustment for a couple during the empty nest stage? *
Gabe industries sells two products, basic models and deluxe models. Basic models sell for $44 per unit with variable costs of $25 per unit. Deluxe models sell for $25 per unit. Deluxe models sell for $54 per unit with variable costs of $25 per unit. Total fixed costs for the company are 1,441. Gabe Industries typically sells three Basic models for every Deluxe model. What is the breakeven point for Basic models and Deluxe models?
a. 26 units of Basic, 38 units of Deluxe
b. 17 units of Basic, 51 units of Deluxe
c. 38 units of Basic, 26 units of Deluxe
d. 51 units of Basic, 17 units of Deluxe
Answer:
See below
Explanation:
Basic models Deluxe models
Sales price $44 $54
Variable costs $25 $25
Contribution margin $9 $29
×
Sales mix 1 3
Total contribution margin $9 $87
Contribution margin per unit = $9 + $87 = $96
Weighted contribution margin= Total contribution margin / Units
= $96 / $4
= $24
Break even point = Total fixed costs / Weighted contribution margin
Break even point = $1,441 / $24
Break even point = 60 units
•Basic units = 60 × 63.33% = 38 units of basic
•Deluxe units = 60 × 43.33% = 26 units of Deluxe units
ABC Partnership has the following capital balances and profit and loss percentages. A (50%) $100,000 B (30%) $200,000 C (20%) $300,000 D will pay a total of $200,000 to the three partners in a privately negotiated transaction to acquire a 25% ownership interest. The goodwill method is to be used. How much Goodwill is recorded by the partnership a. $300,000 b. $225,000 c. $400,000 d. $0 e. $200,000
The goodwill method is to be used. How much Goodwill is recorded by the partnership is 225,000. Hence, option B is correct.
What is goodwill method?Goodwill is calculated by subtracting the purchase price from the difference between the fair market value of the company's assets and liabilities. Companies are required to review their goodwill value on their financial statements at least once a year and reflect any impairments.
This method is used when profits fluctuate and the current year's profit is given primary importance. It's evaluated using the formula. Weighted Average Profit is the sum of all profits divided by the sum of all weights, and Goodwill is computed as Weighted Average Profit times the number of years since the purchase.
Goodwill valuation is the methodical evaluation of a company's goodwill for inclusion in its balance sheet under the heading of intangible assets.
Thus, option B is correct.
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n 2019, the top 4 customers of Brady Corp provided the following revenue. Jenny: $400 Svetlana: $300 Kerry: $900 Maria: $1,200 Brady Corp reported the following for 2019: Total Third Party Revenue. $6,000 Total Intersegment Revenue $9,000 Total Expenses $4,000 Under the major customer test, which customers must Brady Corp provide disclosure about. a. Kerry and Maria b. No customer disclosure required c. Kerry, Maria, Jenny, Svetlana d. Maria only e. Kerry, Maria and Jenny
Answer:
Brady Corporation
Under the major customer test, the customers that Brady must provide disclosure about are:
b. No customer disclosure required.
Explanation:
a) Data and Calculations:
Revenue by top 4 customers:
Jenny: $400
Svetlana: $300
Kerry: $900
Maria: $1,200
Brady Corp Income Statement Details:
Total Third Party Revenue $6,000
Total Intersegment Revenue $9,000
Total company revenue $15,000 (10% of $15,000 = $1,500)
Total Expenses $4,000
Total net operating income $11,000
b) The major customer test requires that if 10 percent or more of the revenue of Brady Corp is derived from sales to any single customer, this fact and the amount of revenue from each such customer shall be disclosed. In this case, there is no customer that gives Brady Corp 10% of its total revenue of $15,000 (or $1,500). It is only Maria that comes close to $1,500. Therefore, this major customer disclosure will not be made by Brady Corp. in 2019.
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect: Group of answer choices
Answer:
4
Explanation:
1. Andy’s demand for pizza to increase
2. Andy’s demand for pizza to decrease
3. Andy’s quantity of pizza demanded to decrease
4. Andy’s demand for beer to increase
Complementary goods are goods that are consumed together. If the price of pizza decreases, the quantity demanded of pizza would increase. this is according to the law of demand.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
While, the quantity demanded of beer would increase. this is because more of pizza is being consumed and both goods are complements
SmartSC purchases from Supplier A are priced at $30 each and used at the rate of 600 units per month. Components purchased from supplier B are priced at $6 each and are used at the rate of 3000 units per year. The annual holding cost is 30 percent of the item’s value. If SmartSC purchases separately from the two suppliers, the fixed ordering cost for supplier A is 40 dollars each time. What is the economic order quantity for supplier A?
a) 125
b) 200
c) 253
d) 367
Answer:
SmartSC
The economic order quantity (EOQ) for Supplier A is:
= c) 253
Explanation:
a) Data and Calculations:
Supplier A Supplier B
Price per unit $30 $6
Annual unit demand 7,200 3,000
Annual holding cost $9 $1.80 ($6 * 30%)
Ordering cost $40
Economic order quantity for Supplier A = square root of (2 * D * S)/H
where D = Annual demand in units
S = Ordering cost per order
H = Holding cost per unit
= square root of (2 * 7,200 * $40)/$9
= square root of 64,000
= 253