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nikitadnepr [17]
3 years ago
8

The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previ

ous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for $9.00 a box. The lettuce is sold for $17.00 a box and the dealer that sells old lettuce is willing to pay $5.00 a box. Past history says that tomorrow's demand for lettuce averages 258 boxes with a standard deviation of 41 boxes.
Required:
How many boxes of lettuce should the supermarket purchase tomorrow?
Business
1 answer:
Alexxx [7]3 years ago
6 0

Answer:

276 boxes

Explanation:

Given the following :

Cost price of lettuce = $9

Selling price of lettuce = $17

Selling price of old lettuce (Salvage value) =$5

Mean demand (m) = 258

Standard deviation(σ) = 41

The marginal profit = selling price - cost price

Marginal profit = $(17 - 9) = $8

Marginal loss ; old lettuce : cost price - salvage value $(9 - 5) = $4

Probability (p) = marginal profit /(marginal profit + marginal loss)

P = 8 / (8 + 4) ; 8 / 12 = 0.667

Using the InvNorm function of the T84 calculator :

InvNorm(prob, mean, standard deviation)

InvNorm(0.667, 258, 41) = 275.697 = 276 boxes

Number of lettuce boxes supermarket should purchase tomorrow = 276 boxes

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 e.$113,300                                          

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7 0
3 years ago
What is the difference between limited liability and unlimited liability
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Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.

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2 years ago
Suppose that the marginal propensity to consume in Frugalia is 0.60. The government of Frugalia enacts a stimulus program that i
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Answer:

option (c) $25 million

Explanation:

Data provided in the question:

The marginal propensity to consume in Frugalia, MPC = 0.60

Increase in spending = $10 million

Now,

The total increase in income

= \frac{\textup{1}}{\textup{1-MPC}}  × Increase in spending

on substituting the respective values, we get

= \frac{\textup{1}}{\textup{1-0.6}}  × $10 million

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or

= 2.5 × $10 million

or

= $25 million

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The answer is option (c) $25 million

5 0
3 years ago
Sheffield Corp. traded machinery with a book value of $978480 and a fair value of $906000. It received in exchange from Ivanhoe
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Gain $72,480

Explanation:

Calculation for the amount of gain or loss that Sheffield should recognize on the exchange

Using this formula

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3 0
3 years ago
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contr
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Answer:

A. $36.55

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C. 7114 units

Explanation:

Requirement 1: Weighted average contribution margin per unit

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Lens B = $30 x 40% = $12

Lens C = $43 x 35% = $15.05

Total Contribution margin per unit = $36.55

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Break even point (units) = Fixed cost / Contribution per unit

Break even point (units) = 187,000/36.55

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Lens B = 5116 x 40% = 2046 units

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Required units = Fixed cost - required profit / contribution per unit

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Lens B = 7114 x 40% = 2846 units

Lens C = 7114 x 35% = 2489 units

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3 years ago
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