Answer:
800 Recliners
Explanation:
Calculation for the optimal number of recliners the company should make during each production run
Using this formula
Economic Order Quantity (EOQ) =√ [(2 D x S) / C]
Where,
Annual Demand (D) = 6,400 Recliners
Fixed Ordering Cost (S) = $400
Carrying cost per recliner (C) = $8
Let plug in the formula
Economic Order Quantity (EOQ)= √[(2 x 6,400 x $400) / $8]
Economic Order Quantity (EOQ)=√$5,120,000/$8
Economic Order Quantity (EOQ)=√$640,000
Economic Order Quantity (EOQ)= 800 Recliners
Therefore the optimal number of recliners the company should make during each production run will be 800 Recliners
Answer:
a) Disclose in the notes
b) no Disclosure
c) Record a liability
Explanation:
There are three scenarios to be considered
1) It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable
First, premise is that Huprey Co. is facing a lawsuit and the possibility of a loss is most possible. If Huprey Co is able to recognize the amount of loss, then he would have been able to record a liability but the inability to estimate the loss means, the company can o<u>nly make appropriate disclosure in notes</u>
2)Huprey is being used for damages of $2 million. It is very unlikely (remote) that Huprey will lose the case.
This second premise is also a lawsuit on damages for $2 million, however, it is most reasonably acceptable that Huprey will win the lawsuit. As such there is no loss, that way there will be no disclosure in Huprey Co's books.
3. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1.25 million, it is probable that Huprey will lose the case.
The probability of losing a case means that there will be a loss to be recorded in the books and since the damages are already estimable to be $1.25 million. Huprey Co should record a liability
Answer:
b. structural unemployment
Answer:
b. 3.70 percent
Explanation:
Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.
Expected rate of return = SUM (probability *return)
Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%
Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%
Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%
Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;
= 1.5% + 2.8% -0.6%
= 3.7%
Therefore, the correct answer is choice B.
Answer:
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