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svp [43]
3 years ago
7

. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual in

ventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item? A. $2.00 B. $3.00 C. $4.00 D. $6.00 E. $8.00
Business
1 answer:
Zielflug [23.3K]3 years ago
4 0

Answer:

Inventory cost will be $3

So option (b) is correct option

Explanation:

We have given that carrying and setup cost is $600

So carrying and setup cost = $600

And EOQ = 200 units

We have to find the inventory carrying cost per year

We know that inventory carrying cost is given by

inventory carrying cost =\frac{carrying\ and\ setup\ cost}{EOQ}=\frac{600}{200}=$3

So option (b) will be correct option

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2 years ago
Airlines can price discriminate by determining people's _______ to pay for luggage accommodations. Some customers will check a b
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Answer:

Willingness to pay

Revenue

Two

Elastic

Inelastic

Explanation:

Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.

In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.

Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.

Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.

It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.

Inelastic demand is defined as when a small change in price has no effect on quantity demanded.

While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.

Elastic demand is when a change in price has effect on quantity demanded.

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3 years ago
Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land wo
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Answer:

C. Ron’s basis in his stock is $27,000

Explanation:

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A group of teens in your town meet and agree to charge a flat fee of five dollars per hour for babysitting. They charge the same
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a monopoly

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(Warranty expense incurred)

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                 To Cash a/c…………………………..$415,000,000

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Accrue the warranty expense with a debit to the warranty price account and a credit to the warranty liability account. As actual warranty claims are received, debit the warranty liability account and credit the stock account for the cost of the replacement parts and products sent to customers.

learn more about liability here brainly.com/question/25687338

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