Answer: The efficient outcome is to have the security system installed. After the meeting the security system will <em><u>be installed</u></em>, which illustrates the <em><u>free rider problem.</u></em>
Free rider is the burden on resource which is been shared, the problem is created by its usage or over-exploitation by individual who aren't paying their fair share.
∴ Here Tom is a free rider. i.e. He is willing to pay $100 where he should've paid $250.
How to calculate Open-to-buy:
Open-to-buy = planned purchases - (orders received + merchandise ordered)
Planned purchases = $2,500
Received orders = $1,200
Ordered merchandise = $700
Open-to-buy = $2,500 - ($1,200 + $700)
Open-to-buy = $2,500 - $1,900
Open-to-buy = $600
C. a negative duration on it's assets.
Answer:
The The number of sweatshirts the company would need to sell to earn a target profit of $1,710 is closest to <u>570</u> sweatshirts.
Explanation:
This can be calculated as follows:
Selling price per unit = $15
Total cost price per unit = Average unit cost + Sales commission per unit = $7 + $5 = $12
Profit per unit = Selling price per unit - Total cost price per unit = $15 - $12 = $3
Target profit = $1,710
Number of sweatshirts to sell to earn a target profit = Target profit / Profit per unit = $1,710 / 3 = 570
