Answer:
maximum profit = $7500
so correct option is c $7500
Explanation:
given data
mean = 500
standard deviation = 300
cost = $10
price = $25
Inventory salvaged = $5
to find out
What is its maximum profit
solution
we get here maximum profit that is express as
maximum profit = mean × ( price - cost ) ..................................1
put here value in equation 1 we get maximum profit
maximum profit = mean × ( price - cost )
maximum profit = 500 × ( $25 - $10 )
maximum profit = 500 × $15
maximum profit = $7500
so correct option is c $7500
<h3>Hello there!</h3>
Your question asks what the purpose of a safety stock is.
<h3>Answer: B). control the likelihood of a stock out due to variable demand and/or lead time.</h3>
The reason why answer choice "B). control the likelihood of a stock out due to variable demand and/or lead time" is the correct answer because companies have safety stocks to control the chances of having a stock out.
Safety stocks are also known as a "reserve" for a company, in other words, stocks that a company doesn't touch. It's to ensure that companies don't go through a time where there's an increase in demand while there is a "delay" in production.
If a companies stock demand goes up, but then they can't "produce" the amount that is needed to meet the demand, then they will go through "stock out" and have to go through what is called "stock out costs."
Safety stocks are also known as a "rainy-day" stock, due to the fact that safety stocks are used when a company are not having a great day with the "demand" / "value" of their stocks. It's just to "ensure" / "keep the company safe" from a huge stock out.
<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
Answer:
Explanation: Ik weet het echt niet en ik ga je plagen met mijn antwoord, ik verwacht niet dat je je moeder afbreekt op zoek naar dit haha.
Answer:
the present value is $4,316.35
Explanation:
The computation of the present value of given cash flows is shown below:
Present value is
= Cash flows at year 1 ÷ (1 + rate of interest) + Cash flows at year 2 ÷ (1 + rate of interest)^2 + Cash flows at year 3 ÷ (1 + rate of interest)^3 + Cash flows at year 4 ÷ (1 + rate of interest)^4
= $880 ÷ 1.08 + $1,250 ÷ 1.08^2 + $1,510 ÷ 1.08^3 + $1,675 ÷ 1..08^4
= $4,316.35
Hence, the present value is $4,316.35