Answer:
D) being unable to engage in all three of the above activities.
Explanation:
An opportunity cost is the cost (or lost benefit) of choosing one activity or investment over another. In this case, if the student decides to attend afternoon class, he/she will not be able to benefit from:
- taking a nap
- seeing a movie with a friend
- studying for next morning's test
So all the three activities represent the opportunity cost of attending afternoon class.
Answer:
Company should load 1,479.9 motorcycles on each truck.
Explanation:
Cost per trip = $1,000
Demand for motorcycles = 300 per day
Cost per engine = $500
Holding cost = 20% of $500
= $100
Assuming that company plant works for 365 days in a year,
Annual demand = 300 motorcycles × 365 days
= 109,500 motorcycles
where,
D = Annual demand in units
S = Set up cost per order
H = Handling cost per order
= 1,479.9
Thus, the company should load 1,479.9 motorcycles on each truck.
Answer:
<u>February.</u>
Desired ending inventory = 10% of March Cost of goods(COGS):
= 10% * 35,000
= $3,500
Inventory needed = COGS + ending inventory
= 32,000 + 3,500
= $35,500
Beginning inventory = January ending inventory = $3,200
Required Purchases = Inventory needed - Beginning inventory
= 35,500 - 3,200
= $32,300
<u>March</u>
Desired ending inventory = 10% of April COGS:
= 10% * 40,000
= $4,000
Inventory needed:
= 35,000 + 4,000
= $39,000
Beginning inventory = February ending inventory = $3,500
Required purchases:
= 39,000 - 3,500
= $35,500
Answer:
An express warranty
Explanation:
Express warranties can be made in writing, orally or even inferred by the salesperson's conduct. Even if the salesperson made a mistake by offering an express warranty, it is still valid. An express warranty states that a good or service will specifically be a certain way, or perform in a certain way. When a salesperson shows a model of the good, that is considered a express warranty that the good will be the same as the model.
Answer:
the portfolio's return will be Ep(r)= 9.2 %
Explanation:
if the stock lies on the security market line , then the expected return will be
Ep(r) = rf + β*( E(M)- rf)
where
Ep(r) = expected return of the portfolio
rf= risk free return
E(M) = expected return of the market
β = portfolio's beta
then
Ep(r) = rf + β*( E(M)- rf)
E(M) = (Ep(r) - rf ) / β + rf
replacing values
E(M) = (Ep(r) - rf ) / β + rf
E(M) = ( 17.2% - 3.2%) /1.4 + 3.2% = 13.2%
since the stock and the risk free asset belongs to the security market line , a combination of both will also lie in this line, then the previous equation of expected return also applies.
Thus for a portfolio of β=0.6
Ep(r) = rf + β*( E(M)- rf) = 3.2% + 0.6*(13.2%-3.2%) = 9.2 %
Ep(r)= 9.2 %
