Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is consideri
1 answer:
You might be interested in
Answer:
The demand function is p= (-2.1)*q + 15.3
Explanation:
The supply function for honey is p=S(q)=0.4*q+2.8, where p is the price in dollars for an 8-oz container and q is the quantity in barrels. The equilibrium price is $4.80. So, the equilibrium quantity is:
4.80=0.4*q+2.8
Solving:
4.80 - 2.8=0.4*q
2=0.4*q
2÷0.4= q
5=q
The demand function, assuming it is linear, is p=m*q+b
The equilibrium quantity is 5 barrels and the equilibrium price is $4.80; and the demand is 4 barrels when the price is $6.90. So:
Isolating the variable "b" from the first equation, you get:
4.80 - m*5= b
Replacing the previous expression in the second equation you get:
6.90=m*4 + 4.80 - m*5
6.90 - 4.80=m*4 - m*5
2.1= (-1)*m
2.1÷(-1)= m
-2.1=m
Replacing the value of "m" in the expression 4.80 - m*5= b you get:
4.80 - (-2.1)*5= b
Solving you get:
15.3= b
So, <u><em>the demand function is p= (-2.1)*q + 15.3</em></u>
Answer:
a.
EOQ = 2,944 units
b.
Setup cost = Numbers of Order x Ordering cost = $8.83
Holding Cost = $8.83
Explanation:
a.
Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.
As per given data
Annual Demand = 50 per week x 52 weeks in a year = 2,600 bolts
Ordering cost = $10
Carrying cost = $0.03 x 20% = $0.006
EOQ =
EOQ =
EOQ = 2,943.92 = 2,944 units
b.
Setup cost = Numbers of Order x Ordering cost = (2,600 / 2,944) x $10 = $8.83
Holding Cost = (2,944 / 2) x $0.006 = $8.83