1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artyom0805 [142]
3 years ago
10

Henrique​ Correa's bakery prepares all its cakes between 4 A.M.and 6 A.M.so they will be fresh when customers arrive.​ Day-old c

akes are virtually always​ sold, but at a​ 50% discount off the regular ​$16 price. The cost of baking a cake is ​$10​, and demand is estimated to be normally​ distributed, with a mean of 30 and a standard deviation of 7.
What is the optimal stocking​ level?
Business
1 answer:
Marianna [84]3 years ago
3 0

Answer:

optimal stocking level = 30.472

Explanation:

given data

Discount = 50%

Regular price, p = $16

cost of cake, c = $10

Mean = 30

Standard deviation, σ = 7

solution

we get her salvage value that is = 50% of Regular price

salvage value s = 50% of $16

salvage value s =  $8

and

Underage cost will be

Cu = p - c    .......................1

put here value

Cu = $16 - $ 10

Cu = $6

and

Overage cost will be

Co = c - s     ........................2

Co = $10 - $8

Co = $2

so here probability is

P ≤ \frac{C_{u}}{(C_{u}+C_{o})}    .....................3

put here value

P ≤ \frac{6}{(6+2)}  

P ≤ 0.75

so here Z value for the probability for 0.75 is

Z =  0.6745

and

optimal stocking level will be

optimal stocking level = Mean + ( z × σ )     .....................4

put here value

optimal stocking level = 30 + 0.6745 × 7

optimal stocking level = 30.472

You might be interested in
Investments can help a business increase productivity by:
anyanavicka [17]

Answer:

c

Explanation:

when Offering the business more efficient ways to make and encourage the business can develop

3 0
3 years ago
Read 2 more answers
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sal
Korvikt [17]

Answer:

Results are below.

Explanation:

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Weighted average contribution margin= 0.2*33 + 0.5*22 + 0.3*41

Weighted average contribution margin= $29.9

Break-even point (units)= 4,544,800 / 29.9

Break-even point (units)= 152,000 units

<u>Now, for each product:</u>

<u></u>

Lawnmowers= 0.2*152,000=30,400

Weed-trimmers= 0.5*152,000= 76,000

Chainsaws= 0.3*152,000= 45,600

8 0
3 years ago
Treasury stock that was purchased for $2,500 is sold for $3,000. As a result of these two transactions combined, a.income will b
Fantom [35]

Answer:

The stockholder's equity will be increased by $500

Explanation:

While stockholders equity is the amount of assets available to shareholders after all liabilities have been settled , treasury stock is the stock that is bought back by the issuing organisation with the aim of reducing the number of outstanding stock in the open market.

Looking at the scenario given , it was an indirect way of raising fund and increasing the equity of the stockholders equity as the treasury stock was later resold at a higher price.

Therefore , the stockholder's equity increases by 3,000- 2500 = 500

4 0
3 years ago
Queen, inc., has a total debt ratio of .32.
gulaghasi [49]

(A) Debt ratio = 0.32

Debt/(debt + equity)= 0.32

Debt = 0.32 *Debt + 0.32 *Equity

0.68* Debt = 0.32* Equity

Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity

Debt /equity ratio = (0.32/068*Equity)/Equity

Debt/Equity ratio = 0.32/0.68 = 0.47

Debt-equity ratio = 0.47 (Rounded to 2 decimals)

(B) Equity multiplier = 1 + debt -equity = 1+0.47 = 1.47

Equity multiplier = 1.47 (Rounded to 2 decimals)

4 0
3 years ago
7 pounds of raw material are required to make 1 finished unit. The company desires an ending raw materials inventory for each mo
timurjin [86]

Answer:

Instructions are below.

Explanation:

We weren't provided with enough information to answer the request. <u>But, I will give an example and formulas to guide an answer.</u>

<u>For example:</u>

Production in units:

May=20,000

June= 22,000

Beginning inventory of direct materials= 8,000

<u>To calculate the purchase for May, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= 20,000*7 + (22,000*7)*0.29 - 8,000

Purchases= 176,660 pounds

7 0
3 years ago
Other questions:
  • The total manufacturing cost variance is a.the flexible budget variance plus the time variance b.the difference between planned
    6·1 answer
  • Of the following types of administrative professionals, which one can expect to earn the highest salary?
    11·1 answer
  • Mike Hansen has adjusted gross income of $82,000. During the year, Mike decided he needed a larger home. He purchased a home on
    7·1 answer
  • Torque corporation is expected to pay a dividend of $1 in the upcoming year. dividends are expected to grow at a rate of 6% per
    11·1 answer
  • Shifting from producing 500 scarves and 225 sweaters, to producing 100 scarves and 350 sweaters would
    13·2 answers
  • Solve the following dividend problem.
    13·2 answers
  • Mumbai Inc. has prepared the following purchases budget:
    7·1 answer
  • LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The f
    12·1 answer
  • What identifies the flow of critical business data
    6·1 answer
  • Which balanced scorecard perspective helps top management focus on what the organization must excel at to effectively meet its f
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!