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Thepotemich [5.8K]
2 years ago
10

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. Compared to the EOQ, the maximum inventory would be approximately:
a. 30 percent higher.
b. 70 percent higher.
c. 30 percent lower.
d. 70 percent lower.
Business
1 answer:
Luden [163]2 years ago
5 0

Answer:

c. 30 percent lower.

Explanation:

Since the manufacturer is contemplating a switch from buying to producing a certain item while setup cost would be the same as ordering cost, the production rate would be about double the usage rate.

Compared to the Economic Order Quantity (EOQ), the maximum inventory would be approximately 30 percent lower under Economic Production Quantity (EPQ), and higher under EOQ.

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True or False? The United States does not have publicly financed health insurance specifically for the unemployed.
iren [92.7K]

Answer:

True

Explanation:

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In the event that an employed worker's spouse loses his/her job to lay-off, the insurance premium financed by the active worker for this family coverage should provide basic health benefits to unemployed workers and their dependents because government does not provide for such category of active group except for senior citizens.

Health insurance is purchased in the private marketplace or provided by the government to certain groups. Private health insurance can be purchased from various organizations such as profit commercial insurance companies or from non – profit insurers.

3 0
2 years ago
Journalize the following transactions for Combs Company.
Anarel [89]

Answer: See explanation

Explanation:

a. Debit: Raw material $12000

Credit: Account payable $11500

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b. Debit: Work in process 11600

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Note:

Material price variance for (a)= 12000 - 11500 = 500

Work in progress = 5800 × 2 = 11600

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2 years ago
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Vaselesa [24]

Answer:

Check the explanation

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Increase in value of dollar has made the foreign steel (a major commodity used in production) cheaper for American producers.

This will reduce the cost of production of American Producers and would increase their profit-margin.

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So, the given scenario will involve short-run aggregate supply curve and would shift the curve to the right.

Kindly check the attached image below to see the required graph -

4 0
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A firm has a capital structure with $3 in equity and $3 of debt. The cost of equity capital is 0.17 and the pretax cost of debt
vampirchik [111]

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I think the answer is D. i’m not really sure but i’m sorry if it is wrong
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