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Shtirlitz [24]
3 years ago
8

Negative inventory investment occurs when companies _____ their inventories _____.

Business
1 answer:
Sindrei [870]3 years ago
4 0

Answer:

The answer is  D. reduce; because sales increase

Explanation:

Negative unplanned inventory is when the business doesn't have sufficient inventory to supply its customers. If customers buy more than expected, inventories unexpectedly decline and unintended inventory investment turns out to have been negative.

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Suppose a consumer is trying to decide how much to spend on foodfood and how much to spend on all other ​(non-foodfood​) consump
elena55 [62]

Answer:

The answer is: A. choose the combination of food and ​non-food consumption that makes her as well off as possible from among the combinations of food and ​non-food items she can afford.

Explanation:

The economic model of consumer behavior states that an individual will consume the products or services that maximize his (or her) benefits and overall well-being while minimizing costs.

So this consumer should choose the combination of products (between food and non-food products) that maximize his well-being while having the lowest possible cost.

3 0
3 years ago
How can the intellectual property be protected?
MAXImum [283]

Answer:

IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create.

Explanation:

4 0
2 years ago
g A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55
azamat

Answer:

$53

Explanation:

Call option is $3

Exercise price is $50

The stock is currently priced at $49

It rises to $55 on the expiration date

Therefore the cost price at which the speculator will break even can be calculated as follows

= ($50-$3)+($55-$49)

= $47 + $6

= $53

8 0
2 years ago
Comfy Mattresses, Inc., is opening a new plant in Orlando, Florida. Ron Lane, distribution manager, has been asked to find the l
romanna [79]

Answer:

The question content is not complet. Here is the complete question I got from google

Comfy Mattresses, Inc., is opening a new plant in Orlando, Florida. Ron Lane, distribution manager, has been asked to find the lowest cost outbound logistics system. Given an annual sales volume of 24,000 mattresses, determine the costs associated with each option below.

a. Build a private warehouse near the plant for $300,000. The variable cost, including warehouse maintenance and labor, is estimated at $5 per unit. Contract carrier transportation costs $12.50 per unit on average. No external transportation services are necessary for shipment of mattresses from the plant to the warehouse in this scenario. The fixed warehouse investment can be depreciated evenly over 10 years.

b. Rent space in a public warehouse 10 miles from the plant. The public warehouse requires no fixed investment but has variable costs of $8 per unit. Outbound contract carrier transportation would cost $12.50 per unit on average. The carrier at charges $5 per unit to deliver the mattresses to the warehouse from the plant.

c. Contract the warehousing and transportation services to the Freeflow Logistic Company, an integrated logistics firm with a warehouse location 25 miles from the plan. Freeflow requires a fixed investment of $150,000 and charges $20 per unit for all services originating at the plant. The fixed investment covers a 10-year agreement with Freeflow.

d. Name a few advantages aside from cost that the low-cost alternative above may have over the other alternatives.

Explanation:

Let us weigh different options for Comfy Mattresses:

Option A

building cost for a private warehouse near the plant(one time fixed cost)  = $300,000

maintenance warehouse of  $ 5 per unit= (24000 X5) = $120,000

cost of contract carrier $12.50 per unit = (24000X12.50) = $300,000

Total cost = $420,000 $(120000+300000)

Depreciation @ 10% = $30,000

Total cost in a year = $450,000 (Total cost + Depreciation = $(420000 +30000))

Option 2

Variable cost=  (24000 X8) $192000

Transportation of outbound carrier = (24000X12.50) $300,000

Carrier charges from warehouse to plant= (24000 X5) $120,000

Total = $612,000 (192000+300000+120000)

Option 3

Company's freeflow Logistic - Fixed investment = $150,000

Other charges =  (24000 X20) = $480,000

Total = $630,000 = $(150000 + 480000)

The best option is the first option. The investment in the first  is more, but after deducting a depreciation of 10% every year the cost would be much less. The total cost in the first year  would be $750,000 if we take depreciation which is more than the 2nd and 3rd option.

The cost will be drastically reduced for the second year. It will  be $450,000, which covers the extra investment done in the warehouse during the first year. From the third year onward, the benefit of going with the first option will start showing.

If we are to  rate all the options, Option 3 would be second in order, after the first option. Here Comfy Mattresses Inc outsources all the services to a private vendor  by paying little extra amount than Option 2. Ina way all the risk as well as tension of transportation and running the plant is passed on the the vendor (Freeflow Logistic Company).

8 0
3 years ago
Two companies share a market, in which they currently make $5,000,000 each. Both need to determine whether they should advertise
snow_tiger [21]

Answer: Please refer to Explanation.

Explanation:

Two Companies. We shall call them A and B.

If A and B decide not to advertise, they both get $5,000,000.

If A advertises and B does not then A captures $3 million from B at a cost of $2 million meaning their payoff would be,

= 5 million - 2 million + 3 million

= $6 million.

A will have $6 million and B will have $2 million as $3 million was captured from them. This scenario holds true if B is the one that advertises and A does not.

If both of them Advertise, they both reduce their gains by $2 million while capturing $3 million from each other so they'll essentially both have just $3 million if they both decide to advertise.

With the above scenarios, it is better for both companies to ADVERTISE if there is NO COLLUSION. This is because it ensures that they do not get the lowest payoff of $2 million if the other company decides to advertise and they do not.

However, if they DO COLLUDE. They must both decide that NONE of them SHOULD ADVERTISE and this would leave them with their original $5 million each which is a higher payoff than the $3 million they will both receive if they were both advertising.

3 0
3 years ago
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