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Ira Lisetskai [31]
3 years ago
6

In a fixed-order-quantity system, when demand is uncertain, using economic order quantity (EOQ) based only on the average demand

will result in a low probability of a stockout. True or False?
Business
1 answer:
Mrrafil [7]3 years ago
3 0

Answer:

False

Explanation:

If the demand is uncertain, if you use average demand to calculate the economic order quantity (EOQ), you will have a high probability of a stock-out occurring.  

EOQ = √(2DS / H)

where:

D = annual demand in units

S = order cost per purchase order

H = holding cost per unit, per year

If D is uncertain, then the whole calculus will either be understated or overstated.

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Which of the following is an inconsistency of using market multiples to determine value? A) Using a market multiple assumes that
VikaD [51]

Answer:

B) Using a market multiple assumes that the target company is mispriced, while comparable companies are correctly priced.

Explanation:

Market Multiple, also known as trading multiples, is used to compare two financial measures, to determine the value of a company. It is another name for Price to Earnings Ratio (also called P/E Ratio).

Using the market multiple approach, investors can determine whether stocks in their portfolios will increase or decrease in price through the next term. Investors may then buy or sell stocks in order to maximize their expected gains calculated.

6 0
3 years ago
In a new margin account, a customer buys 300 shares of ABC at $40 per share, 100 shares of the Ajax Mutual Fund at $24, and 10 P
never [62]

Answer: 12400

Explanation:

It should be noted that 50% of the stick value will be paid by the customer and also 100% of the mutual fund shares value will also be paid because they are nonmarginable securities.

Therefore, 50% of $12,000 = $6,000

Total payment required will now be:

= $6,000 + $2,400 + $4,000

= $12,400.

3 0
3 years ago
What does it mean to “diversify” your portfolio?
olga nikolaevna [1]

Answer:

Explanation:"C": Spreading risk by investing your money in a variety of funds and investment options.

Go

5 0
3 years ago
Hong le buys a car costing $14,000. he agrees to make payments at the end of each monthly period for 4 years. he pays 7% interes
DerKrebs [107]
Use the formula of the present value of an annuity ordinary to find the monthly payment
The formula is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 14000
PMT monthly payment?
R interest rate 0.07
K compounded monthly 12
N time 4years
Solve the formula for PMT
PMT=pv÷[(1-(1+r/k)^(-kn))÷(r/k)]
PMT=14,000÷((1−(1+0.07÷12)^(
−12×4))÷(0.07÷12))
=335.25

Total payments
335.25×12 months×4years
=16,092

Total amountof interest
16,092−14,000
=2,092

Hope it helps!
3 0
3 years ago
Selected accounts with a credit amount omitted are as follows
777dan777 [17]

Answer:

b.$9,290

Explanation:

Calculation for What was the balance of Work in Process as of April 30

WORK IN PROCESS=[(61,100+191,300+57,390)-306,600]+6,100

WORK IN PROCESS=(309,790-306,600)+6,100

WORK IN PROCESS=3,160+6,100

WORK IN PROCESS=$9,290

Therefore the balance of Work in Process as of April 30 will be $9,290

5 0
2 years ago
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