The above given statement is true because the business professionals study the demographic changes in their respective markets by scanning the social environment for opportunities and threats. Demographic changes can have a significant impact on business choices and career opportunities.
When the number of consumers increases automatically the consumption of services and goods increases. This is the fact given in the above statement, so anybody planning invest should analyze the facts and foresee the trend to avoid endup in loss.
Answer:
capitalized worth = $13,475,000
Explanation:
Capitalized worth = annual worth / interest rate
- annual worth = [initial outlay x discrete compounding factor (A/P, 8%, 40 periods)] - annual maintenance cost = ($20,000,000 x 0.0839) - $600,000 = $1,678,000 - $600,000 = $1,078,000
- interest rate = 8%
capitalized worth = $1,078,000 / 8% = $13,475,000
Capitalized worth measures the present value of a project that should last a very long time.
Answer:
Simulation results:
- the average monthly profit resulting from its policy of stocking 100 routers at the beginning of each month is $4237.
- percentage of total demand is satisfied: 92%.
Explanation:
We have to consider three factors to calculate the profit:
- Sales. Every unit sold adds (125-75)=$50 to the profit. We have to consider the condition that the maximum amount of units that can be sold is 100 units.
- The remains cost. If the monthly demand is under 100 units, the profit is reduced by $15 per each remaining unit.
- The shortage cost. For each unit demanded that exceeds the 100 units, the profit is reduced by $30.
The equation can be expressed as:
A simulation with 10,000 trials is done, and the average monthly profit calculated for this policy is $4237.
The demand was calculated with the Excel function INT(NORMINV(RAND(),100,20)), to mimic a normal distribution with mean 100 and standard deviation 20.
b) The satisified demand is calculated for each trial as the minimum value between Q (quantity demanded) and 100, as if Q is bigger than 100, only 100 units of the demand are satisfied.
The percentage of total demand satisfied is:
Answer:
The member countries of BERPHO, a regional free trade area wanted to adopt a common currency, the "BERPH." The "BERPH" was modeled after and, in fact, was exactly similar to the euro. Establishment of the "BERPH" requires participating national governments:
- to give up control over monetary policy.
- to have a sound fiscal situation.
- to have a high degree of price stability.
- to be democratic in nature.
- to have stable exchange rates
Explanation:
BERPHO is an example of an economic union, where the fourteen member countries reached a level of economic integration, which means having a common currency, comprehensive harmonized tax rates, and a common monetary and fiscal policy.
Answer:
The manufacturing overhead cost during the year=$128,000
Explanation:
The manufacturing overhead costs can be calculated using the formula below;
O=C-M
where;
O=manufacturing overhead costs
C=conversion costs
M=material costs
In our case;
O=unknown
C=$728,000
M=$600,000
replacing;
O=728,000-600,000=128,000
O=128,000
The manufacturing overhead cost during the year=$128,000
