Answer:
c. $150.
Explanation:
the extra amount of hours Maurice can work taking a flight will be of 5 hours
(8 hours taking a plane against 3 hours if driving)
As the income per hour is 30 dollar it can generate;
5 hours x $30 per hour = $150
Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150
Answer:
B
Explanation:
If you're going to solve it ur going to need to know how it's going to effectively help don't just do it first think.
Answer:
a) Average demand during the lead time = Sum of all the historical demand during lead time / Number of periods
= (55+75+75+70+80+60+50+70+60+85) / 10
= 680 / 10
= 68 gallons
b) Standard deviation of demand during lead time(\sigmadL) = 8.5 gallons
At 95% service level,value of Z = 1.65
Safety stock = Z(\sigmadL) = 1.65(8.5) = 14.03 gallons
c) Reorder point = Average demand during the lead time + Safety stock
= 68 + 14.03
= 82.03 gallons
Answer:
(A) When the marginal cost of producing an additional unit equals the marginal revenue from that unit.
q = 4 maximize the profit
Explanation:
The profit-maximizing level is the one at which marginal revenue equals marginal cost, so we will set the eqaution and solve for Q
MR = MC
10 - q = 2 + q
10 - 2 = q + q
8 = 2q = 4
the profit is maximize at q = 4