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3 years ago

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for steel

1 answer:

3 0

Direct relation. If iron is used to make steel, and iron is cheaper now, steel will also be cheaper. Decrease in price can mean they have a bunch of it, a surplus.
Supply and demand says if you got a lot of something prices go down. So if you have a lot of cheap iron, you can make a lot of cheap steel

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The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb

NikAS [45]

Answer:

1. 200 units

2. Greater than 30 times per year.

Explanation:

This is an incomplete question. The concluding part I.e question 2 reads:

2. How many times per year must Talbot order the XO-01 when orders are placed using the EOQ quantity.

1. The formulae for economic order quantity is;

EOQ = √ 2 × Annual demand × Ordering cost / Carrying cost

Where,

A = Annual demand = 8,000 units

O = Ordering cost = $50

C = Carrying cost = $20

Therefore,

EOQ = √ 2 × 8,000 × 50 / 20

EOQ = 200 units

The economic order quantity for the XO-01

2. To get the number of orders per year, we'll use the formula

Number of orders per year = D/Q

Where,

D = Annual demand = 8,000 units

Q = Economic order quantity = 200 units

= 8,000 / 200

= 40 orders.

It therefore means that Talbot must order the XO-01 greater than 30 times per year when orders are placed using the EOQ quantity.

5 0

2 years ago

Brief Exercise 13-14 Coronado Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contrac

Iteru [2.4K]

Answer:

(a)Sale contracts

Dr Cash $2,100,000

Cr Unearned warranty revenue $2,100,000

b)Cost of servicing warranty

Dr Warranty expense $189,0000

Cr Inventory $189,000

(c)Recognized warranty revenue

Unearned warranty revenue $525,000

Explanation:

(a)Sale contracts

Dr Cash ($20,000 x105) $2,100,000

Cr Unearned warranty revenue $2,100,000

b)Cost of servicing warranty

Dr Warranty expense $189,0000

Cr Inventory $189,000

(c)Recognized warranty revenue

Unearned warranty revenue $525,000

($2,100,000 ×1/4)

7 0

3 years ago

A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as paym

saveliy_v [14]

The amount received as payment in full on June 23 is $686

Explanation:

Given ,

Credit sale of $750

Terms 2/10, net/30

$50 is granted on June 16

= (750-50)x 0.98

= 700 x 0.98

= 686

The payment is reported as a repayment to the accounts receivable. Make an equivalent debit to the bank account to accept the earned money as a payment

4 0

3 years ago

"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o

Kaylis [27]

Answer:

4.5%

Explanation:

Stock R (Beta) = 1.5

Stock S (Beta) = 0.75

Expected rate of return on an average stock (Rm)= 10%

Risk free rate (Rf) = 4%

Required Return (Re) = Rf +(Rm-Rf) B

Required Return = 0.04 + (0.10-0.04) B

Required Return = 0.04 + 0.06B

Stock R = 0.04 + (0.06 * 1.50)

Stock R = 0.04 + 0.09

Stock R = 0.13

Stock R = 13%

Stock S = 0.04 + (0.06 * 0.75)

Stock S = 0.04 + 0.045

Stock S = 0.085

Stock S = 8.5%

Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.

= 13% - 8.5%

= 4.5%

7 0

3 years ago

Assume the market basket contains 20X, 30Y, and 50Z. The current-year prices for goods X, Y, and Z are $2, $6, and $10, respecti

Aneli [31]

Answer:

CPI for the current year = 200

Explanation:

Given;

Contents in market basket

20X, 30Y, and 50Z

The current-year prices for goods

X = $2

Y = $6

Z = $10

The base-year prices are

X = $1

Y = $3

Z = $5

Now,

Total cost of market basket in the current year

= ∑ (Quantity × Price)

= 20 × $2 + 30 × $6 + 50 × $10

= $40 + $180 + $500

= $720

Total cost of market basket in the base year

= ∑ (Quantity × Price)

= 20 × $1 + 30 × $3 + 50 × $5

= $20 + $90 + $250

= $360

also,

CPI for the current year = $\frac{\textup{Cost of market basket at current year prices}}{\textup{Cost of market basket at base year prices}}\times100$

CPI for the current year = $\frac{\$720}{\$360}\times100$

CPI for the current year = 200

8 0

3 years ago

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for​ steel

Suppose iron ore is an input in producing steel. how will a decrease in the price of iron ore affect the market for steel