Answer:
Kanban container size = 52 units
Number of kanbans needed = 8
Explanation:
As per the data given in the question,
Calculation for Economic Production Quantity :
Q^2 = 2 × Annual demand × Setup cost ÷ (Annual holding cost ×(1 - (daily demand ÷ daily production)))
Q^2 = 2 × 20,000 × 20 ÷ ($400 × (1 - (80 ÷ 320)))
Q^2 = 800,000 ÷ 300
Q = Kanban container size = 52 units
Number of kanbans needed = ( Demand during lead time+safety stock ) ÷ container size
= ((5 × 80) + 50) ÷ 52
= 8.65
= 8 kanbas
When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at every level of production, then the production possibility frontier is <u>rightward</u>.
<h3>What is production possibility frontier?</h3>
A model used to illustrate the trade-offs related to splitting resources between the production of two items is called the Production Possibilities Curve (PPC). The PPC is a useful tool for demonstrating the ideas of scarcity, opportunity cost, efficiency, and economic development and contraction.
The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a different activity is known as the opportunity cost in microeconomic theory. Simply put, it means that if you choose one activity, you forfeit the chance to do another.
We can produce more as the economy expands and all other factors remain the same, hence this will cause a movement in the production possibilities curve to the right, or outward.
Learn more about opportunity cost on:
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Answer:
Annual Interest = $80
Interest rate = 8.89%
Explanation:
The investor pays discounted price for this bond.
We know, Annual Interest = Coupon payment/Market value
Given,
Coupon payment = Principal value*Coupon rate
Coupon payment = $1,000*8% = $80
Market value = Price pays for the bond = $900
Therefore, the annual interest rate = $80/$900
Annual Interest rate = 8.89%
Note that, coupon payment is the annual interest rate.
