Prices fell as consumer demand decreased, and the economy slowed down. Which best explains why people failed to make their promised payments on items during the 1920s? They bought too much.
Answer: number of students advised from each division
Explanation:
Answer:
a) Optimal lot size = 1,118.03
b) Annual total cost = $46.51
Explanation:
As per the data given in the question,
a) Daily holding cost = $50 × 24% ÷ 300 = $0.04
Optimal lot size = Sqrt (2 × Demand rate × Setup cost ÷ (Daily holding cost × ( 1 - Demand rate ÷ Production cost)))
= Sqrt(2 × 100 × $200 ÷ ($0.04 × (1 - 20 ÷ 100)))
= $1,118.03
b) If the production rate is ignored then optimal lot size :
= Sqrt (2 × 20 × $200 ÷ 1)
= 89.44
Annual total cost = Setup cost+ holding cost
= (Demand rate ÷ Optimal lot size) × Setup cost + (Optimal lot size ÷ 2) × holding cost
= (20 ÷ 89.44) × $200 + 89.44 ÷ 2 ×$0.04
= $44.72 + $1.79
= $46.51
<span>If the cards are sold for $2.50 each and the variable cost of production is $1.15, then the gross contribution of each card is $2.50 - $1.15 = $1.35. Therefore, in order to break even, we need to sell enough cards to create a total contribution greater than the $50 fixed cost of starting the venture. Therefore dividing $50 by $1.35 and rounding up, we find a breakeven volume of 38 cards.</span>