A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $522 and B for $53
2. In addition, A offers a three-day rate of $478 and a nine-day rate of $410, and B offers a four-day rate of $456 and a seven-day rate of $424. Annual holding costs are 30 percent of unit price. Three hundred and thirty boxes are to be shipped, and each box has a price of $154. Which shipping alternative would you recommend?
1 answer:
Answer:
Alternative of shipping boxes through shipper A by three-day rate offer is most economical option. Cost of shipping is $603.31, which lowest of all costs.
Explanation:
Given Q = 330 boxes
Unit price, p = $154
Holding cost = H = 30% of p = 0.3*154 = $46.2 per box per annum
Total holding cost = HC = Q*H*(d/365)
Total Shipping Cost = R + HC
Calculation of shipping cost of various alternatives are attached in the following images.
Alternative of shipping boxes through shipper A by three-day rate offer is most economical option. Cost of shipping is $603.31, which lowest of all costs.
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Answer:
loanable amount after Fed operation = $950 M
Securities after fed operation = $50 M
attached below is the T-account table
Explanation:
Given data:
For assets : securities = $100 M , Loans = $800 M
For Liabilities : Constant demand deposit = $1000 M
difference between the assets and liability = $100 M and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action
How with the reserve ratio reduced to: 0.05
hence required Minimum required securities after operation = 0.05 * 1000 M = 50 M
Note : Total demand deposits = securities + loanable amount
therefore loanable amount after Fed operation = $1000 M - $50 M = $950
Attached below is the T-table
When both tables are compared it can be seen that there is a significant increase in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base
