Answer:
a. 8,000 + 1,000 + 3.2Q
b. 27,000 + 3.2Q
c. 15,000 Units
Explanation:
a. The accounting cost function is shown below:-
Accounting cost function = Fixed Leasing and insurance cost + material cost and supplied cost
= 8,000 + 1,000 + 3.2Q
b. The economic cost function is shown below:-
Economic cost function = Accounting cost + Opportunity cost
= 9,000 + 3.2Q + 3*6,000
=27,000 + 3.2Q
c. The computation of break even point is shown below:-
Break even Point = Total Fixed Cost ÷ Price - Average Variable cost
= 27,000 ÷ 5 - 3.2
= 15,000 Units
Answer:
The computations are shown below:
Explanation:
a. The computation of the economic order quantity is shown below:


= 229 units
The carrying cost is come from
= $2.40 × 20%
b. Time between placement of orders is
= Economic order quantity ÷Annual demand
= 229 ÷ 280
= 0.8179 years
So,
= 0.8179 × 365 days
= 298.53 days
We assume 365 days in a year
c. The average annual cost of ordering cost and carrying cost equals to
= Holding cost + ordering cost
= (Economic order quantity ÷ 2 × Holding cost) + (Annual demand ÷ Economic order quantity × ordering cost)
= (229 units ÷ 2 × $0.48) + (280 ÷ 229 units × $45)
= $54.96 + $55.02
= $109.98
d)
Now the reorder level is
= Demand × lead time + safety stock
where, Demand equal to
= Expected demand ÷ total number of weeks in a year
= 280 pounds ÷ 52 weeks
= 5.38461
So, the reorder point would be
= 5.38461 × 3 + $0
= 16.15 pounds
Answer:
making loans
Explanation:
Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc
Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans
Hence, the first option is correct
Answer:
The answer is multi-divisional structure.
Explanation:
A company employing multi-divisional structure would usually function as a parent company that has many business units under it operating different business sectors. This is clearly the case of Elc Inc., since it both manufactures televisions and computers. The fact that both businesses share the same budget shows that the two business units are still operating in the same company.