Answer:
Effect on income= -$2,100
Explanation:
Giving the following information:
Contribution margin $ 98
Increase in variable cost= $5
Increase in sales= 300 units
<u>To determine the effect on income, we need to use the following formula:</u>
Effect on income= increase in contribution margin for new sales - increase in variable costs
Effect on income= 300*93 - 6,000*5
Effect on income= -$2,100
The expected return for stock A and B is 8.55% and 15.11% respectively.
<h3>What is the Expected return?</h3>
= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)
Expected return for stock A:
= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)
= 0.0855
= 8.55%
Expected return for stock B:
= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)
= 0.1511
= 15.11%
Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.
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Answer:
a) $3
b) $2
c) 1449
Explanation:
Given:
The cost for a carton of milk = $3
Selling price for a carton of milk = $5
Salvage value = $0 [since When the milk expires, it is thrown out ]3
Mean of historical monthly demand = 1,500
Standard deviation = 200
Now,
a) cost of overstocking = Cost for a carton of milk - Salvage value
= $3 - $0
= $3
cost of under-stocking = Selling price - cost for a carton of milk
= $5 - $3
= $2
b) critical ratio =
or
critical ratio =
or
critical ratio = 0.4
c) optimal quantity of milk cartons = Mean + ( z × standard deviation )
here, z is the z-score for the critical ration of 0.4
we know
z-score(0.4) = -0.253
thus,
optimal quantity of milk cartons = 1,500 + ( -0.253 × 200 )
= 1500 - 50.6
= 1449.4 ≈ 1449 units
Answer:
Pull factor becoming a push factor
Explanation:
Nigeria is the most populous black nation on earth and attracts a lot of tourist as well as investors at every point in time. During the 1970's, there was migration of people from other west African countries due to the economic stabilty and increasing economic expansion, thus making Nigeria a place to search for greener pasture within the continent. In the 1980's, there was an economic downturn that hit the country so hard that Nigerians started calling for the exit of fellow african nationals in the country. Most affected country then was Ghana and there was a slogan with tthe phrase 'Ghana-must-go'.
The phrase went on to become the name of the bags with which Ghanians left tthe country with.
N.B: look up Ghana-must-go bags on google.
Cheers.
I think it’s D. All of the above