The view regarding this inventory policy by GANT is that there'll be a reduction in the revenue of the company.
<h3>How to illustrate the information?</h3>
It should be noted that inventory policies are used to determine the best way that a product can flow through a supply chain.
Here, are are informed that GANT supplies clothes to Pyramid and since Pyramid employs very few staff in a move to cut down costs of operations, it'll lead to the reduction in revenue
The assumptions that will guide in determining the adequate level of inventory include the demand and level of stocks.
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Answer:
$254,700
Explanation:
Data provided in the question
Land Purchased = $250,000
Property taxes = $1,500
Attorney fees = $1,000
Land graded = $2,200
The calculation of the cost for the land is shown below:-
Cost for the land = Land Purchased + Property taxes + Attorney fees + Land graded
= $250,000 + $1,500 + $1,000 + $2,200
= $254,700
To compute for the rate for the year, the formula that we
will be using would be the r = I / Pt.
Where:
r = interest rate
I = interest; to solve for the interest, we know that our
principal value is $30,000 and our future value is $42,135, just deduct the $30,000
from there, and you can get the interest. $42,135 – $30,000 = $12,135
P = principal = $30,000
t = time = 3 years
r = 12,135 / (30,000) (3)
r = 12,135 / 90,000
r = 0.1348 or 13.48%
to check, use the I = Prt then just add the Principal to get
the future value
I = Prt
= 30,000 * 0.1348 * 3
= 12,135
Future value = P + I
= 30,000 + 12,135
= 42, 135
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The answer is true because consumers wouldn't have the same success in this economy and it needs growth and change in order for it to maintain stability