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3 years ago

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All of the following are examples of capital except: (A) the robot used to help produce your car.(B) a computer used by your pro

fessor to write this exam.(C) the factory that produces the costume jewelry you buy.(D) the inventory of unsold goods at your local hardware store.(E) an uncut diamond that you discover in your backyard.

1 answer:

tiny-mole [99]3 years ago

6 0

Answer:

E. An uncut diamond that you discover in your backyard.

Explanation:

Generally, the term ‘capital’ refers to any financial resources or assets owned by a business that are useful in furthering development and generating income.

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Bell Computers purchases integrated chips at â€‹$350 per chip. The holding cost is â€‹$35 per unit perâ€‹ year, the ordering cos

valentina_108 [34]

Answer:

<h3><u>When holding costs are $35 per unit</u>,</h3>

1.The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a fixed holding cost) is <u>182 units</u>.

2. At the chosen level of quantity, discount, and using the fixed holding cost, the total annual cost for Bell computers to order, purchase, and hold the integrated chips is <u>$1,585,898</u>.

<h3><u>When holding costs are 10% of purchase price per unit,</u></h3>

1.The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a fixed holding cost) is <u>189 units</u>.

2. At the chosen level of quantity, discount, and using the fixed holding cost, the total annual cost for Bell computers to order, purchase, and hold the integrated chips is <u>$1,585,546.</u>

<h3>When holding costs are $35 per unit,</h3>

We follow these steps to arrive at the answer:

1. We have

Ordering Costs per order $119

Holding Cost per unit $35

Demand per month 405 units

Demand per year is $405*12 = 4860 units$

Since the most cost-effective order quantity is the Economic Order Quantity (EOQ), we compute the EOQ

$\mathbf{EOQ = \sqrt{\frac{2SD}{H}}}$

where

D is demand per year

S is the Ordering cost per order

H is the holding cost per unit

Substituting the values we get,

$EOQ = \sqrt{\frac{2*(405*12)*119}{35}}$

$EOQ = \sqrt{33048}$

$\mathbf{EOQ = 181.7910889 \approx 182 units}$

2. The annual costs of ordering, purchasing and holding the integrated chips is the sum of the cost of ordering, purchasing and holding the integrated chips.

Since the EOQ at 182 units falls in the second slab of Rich Blue Manufacturing, Bell computer can purchase chips at $325 per unit

Cost of purchasing the chips $\mathbf{405*12*325 = 1579500}$

Number of orders to placed $\frac{Annual Demand}{EOQ}$

Number of orders to placed $\frac{405*12}{182}$

Number of orders to placed $\mathbf{26.703 \approx 27 orders}$

Cost of orders $Number of orders * Cost per order$

Cost of orders $\mathbf{27 * 119 = 3213
}$

Holding Costs $\frac{EOQ}{2} * Holding cost per unit$

Holding Costs $\frac{182}{2} * 35$

Holding Costs $\mathbf{3185
}$

Total annual costs $\mathbf{1579500 + 3213 + 3185 = 1585898}$

<h3>When holding costs are 10% of purchase price per unit,</h3>

1. We need to calculate the EOQ, which holding cost at each purchase price

$EOQ_{350} = (2*(405*12)*119)/(350*0.10) \approx 182 units$

$\mathbf{EOQ_{325} = (2*(405*12)*119)/(325*0.10)\approx 189 units}$

$EOQ_{300} = (2*(405*12)*119)/(300*0.10)\approx 197 units$

Since the EOQ lies between 100 and 199 units in all the three costs, Bell Computers can purchase the units only at $325 per unit, so its holding cost will be 10% of $325, which is $32.50 per unit.

2.2. The annual costs of ordering, purchasing and holding the integrated chips is the sum of the cost of ordering, purchasing and holding the integrated chips.

Since the EOQ at 189 units falls in the second slab of Rich Blue Manufacturing, Bell computer can purchase chips at $325 per unit

Cost of purchasing the chips $\mathbf{405*12*325 = 1579500}$

Number of orders to placed $\frac{Annual Demand}{EOQ}$

Number of orders to placed $\frac{405*12}{189}$

Number of orders to placed $\mathbf{24.762 \approx 25 orders}$

Cost of orders $Number of orders * Cost per order$

Cost of orders $\mathbf{25 * 119 = 2975 }$

Holding Costs $\frac{EOQ}{2} * Holding cost per unit$

Holding Costs $\frac{189}{2} * 32.5$

Holding Costs $\mathbf{3071.25
}$

Total annual costs $\mathbf{1579500 + 2975 + 3071.25 = 1585546.25
}$

<h3></h3>

7 0

2 years ago

On January 1, 2018, Album Co. issued $200,000 of ten-year bonds. Interest is payable semi-annually on June 30 and December 31. T

Mrac [35]

Answer:

12%

Explanation:

Album Co. paid $12,000 for interest, and that is the stated interest of the bonds.

Stated interest = $12,000 / $200,000 = 6% semiannually, therefore the annual stated interest is 6% x 2 = 12%

The stated rate is applied to the face value of the bonds, regardless of their selling or trading price.

6 0

3 years ago

Monopolies can earn positive economic profits in the long run while monopolistically competitive firms cannot due to

inessss [21]

Answer:

barriers to entry in monopoly but not in monopolistic competition.

Explanation:

Imagine a situation where a monopolistically competitive firm is doing very well and is able to earn economic profit (profits higher than normal) in the short run. Since this company is earning higher than normal profits, other companies will enter the market and start competing against them hoping to get a piece of that abnormally high gain. As more competitors enter the market, economic profits will start to decrease until finally they are eliminated.

Since monopolies do not face competition, they can earn economic profits in the long run.

4 0

3 years ago

What role does the government play in the economy's circular flow?

mamaluj [8]

Depends are we talking capitalism, or socialism.

In capitalism there is no government intervention in the Economy, no laws, nothing.

In socialism, the government controls all of the economy, Tarriffs, Hours, etc.

So the government is supposed to play the middleman to help the people, but also the businesses, as such the united states had introduced less work hours, to help increase the productivity of the workers, which did indeed work.

4 0

2 years ago

One of the advantages of being a limited partner in a real estate investment venture is that you have __________ liability. limi

lara31 [8.8K]

Limited financial liability. It is one of the advantages because the strain of effort and time would be not part of the investment and if the it is successful you're earning even though you're not doing anything. You're only role is able to provide money or resources to the venture.

3 0

3 years ago