Answer:
D. Decreases from 30 to 28.5 bags
Explanation:
The computation of the economic order quantity is shown below:
= 
where,
Carrying cost is $80 × 40% = $32
Annual demand = 60 bags × 12 months = 720 bag
And, the ordering cost is $20 per order
Now put these values to the above formula
So, the value would equal to
= 
= 30 bags
Now the demand is decreased by 10% So, the annual demand would be
= (60 - 6) × 12 months
= 54 bags × 12 months
= 648 bags
The other things will remain the same
Now put these values to the above formula
So, the value would equal to
= 
= 28.46 bags
Answer:
D
Explanation:
If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.
Answer:
Liquidity Effect
Explanation:
The liquidity effect is one of the resulting outcomes of the government policies which increases money in the economy system. However, the liquidity effect is the cause of the reduction in the real interest rates.
Therefore, If the Fed increases its open market purchases of government securities, it exerts downward pressure on real interest rates. This situation is commonly referred to as LIQUIDITY EFFECT.
Companies may try to lower their labor costs by laying off higher paid workers.
Typically the higher paid workers will be professionals who have worked their way up over time and tend to be older, while younger workers fresh out of school and looking for their first jobs will be more willing to take lower salaries.
