Answer:
Option (c) is correct.
Explanation:
Variable manufacturing costs = $30000
Variable selling and administrative costs = $14000
Fixed manufacturing costs = $160000
Fixed selling and administrative costs = $120000
Investment = $1700000
ROI = 50%
Planned production and sales = 5000 pairs
ROI = Investment Value × ROI Rate
= $1,700,000 × 50%
= $850,000
Desired ROI per Pair of Shoes :-
= ROI ÷ Planned production and sales
= $850,000 ÷ 5000 pairs
= $170
Answer:
Best reorder size = 216
Reorder point = 35
Explanation:
Required:
Using the above information, find the best order size and the reorder point.
To find the best order size, EOQ, use the formula:



Best reorder size is 216 mufflers
To find the reorder point, use the formula:
R = d' L + z
Where d' = average daily demand
L = lead time in days
z = number of standard deviation from a specified probability
= standard deviation of usage in lead time
Daily demand, d'=
12 mufflers
Since lead time is 2 working days, standard deviation of lead time
Therefore,
R = d' L + z
= (12 * 2) + (1.28 * 8.48)
= 24 + 10.9
= 34.9
Approximately 35
Reorder point is = 35 mufflers
Often, products enter decline the stage of the product life cycle not due to any error in strategy but because of environmental changes.
<h3>What is product life cycle?</h3>
A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves. There are four stages in a product's life cycle—introduction, growth, maturity, and decline.
<h3>What is the decline stage?</h3>
The final stage of the product life cycle (after introductory stage, growth stage and maturity stage) when sales are dropping because the original need and want have diminished or because another product innovation has been introduced.
The sales of most products will decline at some stage. This can be due to factors such as technological advances, trends, innovation or changing consumer tastes. You will know when your product reaches the decline stage of its life cycle because you will notice a significant downturn in the revenue it generates.
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The three major annual costs of owning a vehicle are fuel, insurance, and maintenance. Insurance is the most expensive because it is for the entire year.
What do you mean by cost?
The amount of money spent by a company on the creation or production of goods or services is referred to as the cost.
It does not include the profit margin. From the standpoint of a seller, the cost is the amount of money spent to produce a good or product.
Hence the major annual costs of owning a vehicle are fuel, insurance, and maintenance which is occurred time to time.
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Answer:
Profits and losses will be shared equally
Explanation:
A partnership is a form of business ownership where two or more parties combine efforts to do business. The members of the partnership share the profits and losses arising from the business.
In ordinary circumstances, profits and losses will be shared as agreed by the partners and recorded in the partnership deed.
If the partnership deed is silent on the profit or loss sharing ratio, the law provides that profits and losses be shared equally. Sometimes a partnership deed may specify the formula for sharing of either losses or profits. A specification on profits does not imply that losses will follow suit. If losses occur, they will be shared equally