Along with four other owners of small retail stores, Scott was invited to participate in a(n) ______________ where the researche
1 answer:
You might be interested in
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:
option (A) $29,920
Explanation:
Data provided in the question;
Purchasing cost = $40,000
Estimated life = 6 years
Salvage value = $4,000
Estimated driving life = 100,000
Vehicle driven in total till 2020 = 10,000 + 18,000 = 28,000
Now,
Using the units-of-production depreciation method
Total depreciation till 2020 =
or
Total depreciation till 2020 =
or
Total depreciation till 2020 = $10,080
Thus,
Book value on December 31, 2020 = Purchasing cost - Depreciation
= $40,000 - $10,080
= $29,920
Hence,
The correct answer is option (A) $29,920