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Salsk061 [2.6K]
2 years ago
5

What is the economic order quantity if annual demand is 100 units, the order placement cost is $25, and the holding cost per uni

t per year is $50
Business
1 answer:
ra1l [238]2 years ago
5 0

The  economic order quantity if annual demand is 100 units is: 10 units.

<h3>Economic order quantity</h3>

Using this formula

Economic order quantity =√2×Annual demand× Order placement cost/ Holding cost

Let plug in the formula

Economic order quantity=√2×100×$25/$50

Economic order quantity=√5,000/50

Economic order quantity=√100

Economic order quantity=10 units

Inconclusion the  economic order quantity if annual demand is 100 units is: 10 units.

Learn more about  economic order quantity here:brainly.com/question/14625177

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Answer: The presence of asymmetric information

                                               

Explanation:  In simple words, asymmetric information refers to the situation when one party to a contract have extra information regarding a subject than the other party of the contract.

Asymmetric information creates the potential of misconduct from the leading party as they can easily cheat the other party by concealing that important information.

In the given case, Mr. Smith was aware that his laptop is not working properly but still he sold its to a customer who was not aware of it. Thus, we can conclude that the correct option is C.

5 0
3 years ago
A bank that has liabilities of $150 billion and a net worth of $20 billion must have:
Yakvenalex [24]
Had to look for the options and here is my answer. Given that the bank possesses a liability that is worth $150 billion and its net worth is only $20 billion, then this would mean that the bank must have ASSETS OF $170 BILLION. Hope this answers your question.
7 0
3 years ago
Suppose your bank account pays interest monthly with an effective annual rate of 6%. What amount of interest will you earn each m
Bess [88]

Answer:

0.4868%

$615.47

Explanation:

Given that

a. EAR = 6%

Thus,

Equivalent monthly rate = (1 + r)^n - 1

Where r = EAR

Therefore

= (1 + 0.06)^1/12 - 1

= 1.0048675 - 1

= 0.0048675 × 100

= 0.4868%

b. Given that

Monthly rate = 0.4868%

Future value = 100,000

Time = 10 years

Recall that

FV annuity formula = C × (1/r) × ([1 + r ]^n - 1)

Where

C = payment

Therefore

100000 = C (1/0.004868) × ([1 + 0.004868]^120 - 1)

C = 100,000/(1/0.004868) × ([1 + 0.004868]^120 - 1)

C = $615.47 per month

4 0
2 years ago
Read 2 more answers
A company's common stock shares are expected to bring a 13 % return to their investors in case of "recession" state of the econo
Ludmilka [50]

Answer:

The expected rate of return is 8.65%

Explanation:

The expected return on a stock can be calculated by multiplying the return in each scenario by the probability of that scenario. This will provide the expected value of the return based on all these scenarios. Thus, the rate of return is,

Rate of return = rA * pA + rB * pB + rC * pC

Where,

  • r represents the return in each scenario
  • p represents the probability of each scenario

The probability of normal state is = 1 - 0.45 - 0.05  =  0.5

Rate of return = 0.13 * 0.45 + 0.06 * 0.5  + (-0.04) * 0.05

Rate of return = 0.0865 or 8.65%

3 0
3 years ago
‏( Z ) Company has beginning inventory of 15,000 units and expected sales of 23,000 units . If the desired ending inventory is 1
devlian [24]

Answer:

the  number of units should be produced is 26,000 units

Explanation:

The computation of the number of units should be produced is as follows:

Units to be produced is

= Expected sales units + ending inventory units - beginning inventory units

= 23,000 units + 18,000 units - 15,000 units

= 26,000 units

Hence, the  number of units should be produced is 26,000 units

4 0
2 years ago
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