Answer:
(a) Yes. It is an opportunity cost of new job because the additional time he spent commuting is a cost, as he can utilize that time in doing something else.
(b) Yes. It is also an opportunity cost because if a person wants to join a new job then he have to give up his current job. So, the earning of $45,000 from his current job is the opportunity cost of accepting the new job.
(c) No. It is not an opportunity cost but it is an additional benefit from the new job because he is not sacrificing anything to obtain this benefit.
Answer:
a) $3
b) $2
c) 1449
Explanation:
Given:
The cost for a carton of milk = $3
Selling price for a carton of milk = $5
Salvage value = $0 [since When the milk expires, it is thrown out ]3
Mean of historical monthly demand = 1,500
Standard deviation = 200
Now,
a) cost of overstocking = Cost for a carton of milk - Salvage value
= $3 - $0
= $3
cost of under-stocking = Selling price - cost for a carton of milk
= $5 - $3
= $2
b) critical ratio = 
or
critical ratio = 
or
critical ratio = 0.4
c) optimal quantity of milk cartons = Mean + ( z × standard deviation )
here, z is the z-score for the critical ration of 0.4
we know
z-score(0.4) = -0.253
thus,
optimal quantity of milk cartons = 1,500 + ( -0.253 × 200 )
= 1500 - 50.6
= 1449.4 ≈ 1449 units
Answer:
Expected contribution as per sales mix = $37*0.60 + $50*0.40
= $22.20 + $20
= $42.20 per unit
Total number of products in total at break even point = Total fixed cost / Contribution per unit
= $227,880 / $42.20 per unit
= 5,400 units
How many units each of Super and Supreme must Adams sell to break even?
<u>According to sales mix:</u>
Super = 5,400 * 60% = 3,240 units
Supreme = 5,400 * 40% = 2,160 units.
Answer: The two dimensions of the competing values framework are the internal focus and imagination and the flexibility and discretion.
Explanation: There are 2 dimensions but 4 models within the competing values framework. The reason this model is called the competing models framework is because each model conflicts the message of another. These framework models do not agree and often times compete for what the best option to make is.
