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baherus [9]
3 years ago
8

A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost.

The production rate would be about double the usage rate. (Can you please show me how you did it)
1) Compared to the EOQ, the economic run size would be

A) the same

B) approx 20% larger

C) approx 40% larger

D) 20% smaller

E) approx 40% smaller

2. Compared to the EOQ, the miximum inventory would be

A) approx 70% higher

B) approx 30% higher

C) the same

D) approx 30% lower

E) approx 70% lower
Business
1 answer:
Flauer [41]3 years ago
4 0

Answer

D) compared to the EOQ, the maximum inventory would be approx 30% lower.

Explanation

EOQ = √(2*Co*D/Cc)

EPQ= √ (2*Co*D/(Cc*(1-x)))

x=D/P

D = demand rate

P =production rate

Co=ordering cost

Cc=holding cost

1) The production rate would be about double the usage rate.

hence, P = 2D

x=D/2D=0.5

EPQ= √ (2*Co*D/((1-0.5)*Cc))

EPQ= √ (2*Co*D/0.5Cc)

EPQ=√ (1/0.5)*EOQ

EPQ=√ (2)*EOQ

EPQ=1.41*EOQ

Hence, EPQ is around 40% larger than EOQ.

Ans.: c) EPQ will be approximately 40% larger than the EOQ.

2) Compared to the EOQ, the maximum inventory would be

maximum inventory = Q

EPQ = 1.41 EOQ

EPQ = 1.41*Q

Q=EPQ/1.41

Q=0.71 EPQ

Hence, compared to EOQ, maximum inventory in EPQ is only 70% of that in EOQ model.

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nikitadnepr [17]

Answer: The loan was taken for 265 days.

We arrive at the answer as follows:

First we find the ratio of interest paid to the total loan amount to determine the interest rate:

Interest paid  = $1,307

Loan Amount = $45,000

\frac{Int paid}{Loan amount} = \frac{1307}{45000} = 0.029044444

Since the interest rate calculated above is less than the annual interest rate at 4%, we conclude that the loan taken was for a period of less than one year.

We can determine the period for which the loan was taken as follows:

Let 'x' be the time for which the loan was taken.

We need to solve for x in the proportion below

0.04 : 365 ::  0.029044444:x

Solving we get,

\frac{0.04}{365} = \frac{0.029044444}{x}

x = \frac{0.029044444 * 365}{0.04}

x = 265.0305556

8 0
3 years ago
Which of the following statements is CORRECT?
zaharov [31]

Answer:

If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.

Explanation:

The dividend is shown while preparing the retained earning statement. So, it does not affect the net income.

The highly liquid marketable securities does not show a decline in the current assets

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Account receivable are reported in the current assets rather than the current liabilities

We know that

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If the dividend amount is more than the net income so the ending balance of retained earning will decline than its beginning year balance.

3 0
2 years ago
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Rick is a machine operator in a plastic manufacturing company. He believes that if he performs better, he will receive more ince
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Instrumentality.

Since Rick believes that working hard will result in better incentives and his attitude towards these incentives is not known, we can say that in the context of expectancy theory of motivation, that this scenario best reflects the factor of <u>instrumentality</u>.

Vroom's expectancy theory of motivation attempts to explain that people choose to perform certain actions over other in a manner that aims to maximize pleasure and reduce pain to lowest possible extent.

There are three factors that affect motivation : expectancy, instrumentality and valence.

Expectancy : refers to the belief of working harder with the expectation of attaining the goals set within an organization.

Instrumentality : refers to the belief that one will be rewarded if certain goals are met. These rewards may take the form of increased wages, recognition, increased incentives etc.

Valence: refers to the value attached by the worker to the reward that has been attained.

4 0
3 years ago
A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. I
slavikrds [6]

Answer:

value of the firm = 21.20 million

value of the firm =  20.80 million

Explanation:

given data

current profits = $400,000

annual rate = 4 percent

opportunity cost = 6 percent

solution

we get here value of the firm before pays out current profits as dividend is express as

value of the firm = current profits ( 1+opportunity cost  ) ÷ ( opportunity cost - annual rate ) ................1

put here value

value of the firm = \frac{400000*(1+0.06)}{0.06-0.04}  

value of the firm = 21.20 million

and

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value of the firm =  \frac{400000*(1+0.04)}{0.06-0.04}  

value of the firm =  20.80 million

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3 years ago
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joja [24]

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This measure is used to show the productivity of the people in the nation such that a higher figure means that the citizens are more productive.

Find out more on GDP per capita at brainly.com/question/18414212.

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