Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x $2 = $0.30
EOQ = √<u>2DCo</u>
H
EOQ = √<u>2 x 100,000 x $15</u>
0.30
EOQ = 3,162 units
2. Maximum inventory
= Safety stock + EOQ
= 1,500 + 3,162
= 4,662 units
3. Average inventory
= EOQ/2
= <u>3,162</u>
2
= 1,581 units
4. Number of order
= <u>Annual demand</u>
EOQ
= <u>100,000</u>
3,162
= 32 times
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.
Answer: a. Providing the borrower with the information for both contacts.
Explanation:
There is no legal precedent that states that the Notary should not provide the borrower with information to the closing agent and the lender's representative so in this case the Notary should provide the borrower with the information on both contacts.
Answer:
The three would be used in Tax Computation
Explanation: continuous
Answer: 25%
Explanation:
The Sharpe Ratio will be calculated by using the formula:
= (Rp−Rf)/σp
where,
Rp = return of portfolio = 0.08
Rf = risk-free rate = 0.03
σp = standard deviation of portfolio’s excess return = 0.20
Therefore, Sharpe Ratio will be:
= (Rp−Rf)/σp
= (0.08 - 0.03)/0.20
= 0.05/0.20
= 0.25 or 25%
The Sharpe ratio is 25%.
