Answer:
74 units and 90 units.
Explanation:
So, we have the demand for the first six months, K1 = 600 units = 600 units/ 6months = 100 units; the demand for the second six months, K2 = 900 units = 900/6 = 150 units; holding cost,J = $2 per unit ; process cost, P = $55 per order.
The formula for determining an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods is the Economic Order Quantity formula which is given below;
Economic Order Quantity = √[ (2 × K1 × P)/ J ].
(1). For the first six months;
Economic Order Quantity = √ [ ( 2 × 100 × 55)/ 2].
Economic Order Quantity = 74 units.
(2). For the second six months.
Economic Order Quantity = √ [ ( 2 × 150 × 55)/ 2].
Economic Order Quantity = 90 units.
Answer:
The investment will fall.
Explanation:
The U.S investment will fall because the increase in the tax will reduce its corporate profit and gross domestic investment will fall. Since the primary motive of every firm or company is to earn profit but if their profit decreases then the investor will not invest. Moreover, the company or investor will choose a different country where it can make more profit. Therefore, a rise in tax rate demotivates the investment.
Answer:
The U.S. firm will <u>lose $985.6</u> by hedging its exchange rate exposure.
Explanation:
- We have the two scenarios Stover Corporation may choose to exercise as below:
<u>* Without hedging:</u>
In 90 days, Stover receives 39,960 Swiss francs, exchange this amount at the spot rate in 90 days which is 1.615 to get: 39,960/1.615 = $24,743.03.
<u>* With hedging:</u>
In 90 days, Stover receives 39,960 Swiss francs, exchange this amount at the 90-day-forward rate entered at the beginning, which is 1.682 to get: 39,960/1.682 = $23,757.43.
- As a result, entering into exchange rate hedging makes Stover incur loss of $24,743.03 - $23.757.43 = $985.6.
Answer:
<u><em>kyle does not owe the landlord any liability since the contract is void.</em></u>
Explanation:
To answer this question i would first explain what <u>disaffirmance </u>means. the term means that to express oneself in a way which shows that they are no longer liable to certain bindings to a contract. A minor is someone who is considered to be younger than 18 years of age. Minors do not have certain rights and obligations and these includes certain civil and political obligations. <em><u>As a minor kylie has no legal rights to enter a contract with the landlord. The law is protective of people of his age from certain ntypes of responsibilities due to their young age which makes them incapable of handling such. Apart from sports a minor cannot enter into a contract. also we have in this scenario that kyle returned the keys to the landlord and by this action he has shown that he is not bound by any contract with the landlord. since he paid his rent for the period of 4 months, the contract was disaffirmed when he took the keys back to the landlord.</u></em>
