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Colt1911 [192]
3 years ago
15

A manager receives a forecast for next year. Demand is projected to be 590 units for the first half of the year and 940 units fo

r the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order.
a. Assuming that monthly demand will be level during each of the six-month periods covered by the forecast (e.g., 100 per month for each of the first six months), determine an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods. (Round your answers to the nearest whole number.)
Business
1 answer:
BartSMP [9]3 years ago
6 0

Answer:

74 units; 93 units

Explanation:

Given that,

Holding cost, H = $2 per unit

Carrying cost, O = $55

Demand in first half, D1 = 590 units

                                       = 590 ÷ 6

                                       = 98.33 per month

Demand in second half, D2 = 940 units

                                       = 940 ÷ 6

                                       = 156.67 per month

For D1; EOQ:

EOQ=\sqrt{\frac{2\times D\times O}{H} }

EOQ=\sqrt{\frac{2\times 98.33\times 55}{2} }

               = 73.54 or 74 units

For D2; EOQ:

EOQ=\sqrt{\frac{2\times D\times O}{H} }

EOQ=\sqrt{\frac{2\times 156.67\times 55}{2} }

               = 92.82 or 93 units

Hence, the appropriate order size will be 74 units and 93 units.

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<u>Market segmentation.</u>

Explanation:

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3 years ago
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sammy [17]

Answer:

I think things you can do to show enthusiasm are:

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2. Think on the bright side.

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Hope this helps!!!

7 0
3 years ago
First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest
Anarel [89]

Answer:

$14,343.25

Explanation:

First city bank pays 8% simple interest in a savings account

Second city bank pays 8% interest compounded annually

$68,000 is deposited deposited in each of the bank

The first step is to calculate the simple interesr per year of first city bank

= principal × rate

= 68,000 × 8/100

= 68,000 × 0.08

= 5,440

The interest earned for the period of 8 years can be calculated as follows.

= 5,440 × 8

= 43,520

The balance at the end of 8 years can be calculated as follows

= 68,000 + 43,520

= 111,520

The next step is to calculate the future value of second city bank

= principal × (1+R)^n

= 68,000 × (1+8%)^8

= 68,000 × (1+0.08)^8

= 68,000 × 1.08^8

= 68,000 × 1.85093021

= 125,863.25

Therefore the amount of money earned from second city bank at the end of 8 years can be calculated as follows

= 125,863.25-111,520

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Hence the money that was earned from second city bank at the end of 8 years is $14,343.25

8 0
3 years ago
Holdup Bank has an issue of preferred stock with a stated dividend of $4.25 that just sold for $93 per share. What is the bank’s
Aleks04 [339]

Answer:

cost of preferred stock will be equal to 4.56 %

Explanation:

We have given dividend on the preferred stock = $4.25

As the stock is sold for $93 per share so current price = $93

We have to find the preferred stock

We know that preferred stock is given by

Preferred stock =\frac{dividend}{current\ price}=\frac{4.25}{93}=0.0456 = 4.56 %

So cost of preferred stock will be equal to 4.56 %

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3 years ago
What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?A. Isoquants will bec
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Answer:

C. Isoquants will become much flatter.

Explanation:

An isoquant which from Latin maeans "equal quantity"can be regarded as counterpart of the consumer's indifference curve of a company, it is curve which shows some kind of consistent amount of output. It can be known with it's negative slope. With isoquant all the inputs that gives rise to the same level of output can be known

Therefore, in a case whereby robots become increasingly good at doing manual and mental labor then a typical isoquant will become much flatter.

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