Answer:
Explanation:
Given Demand D = 12,500 lights per year
Set up cost S = $51
Cost of each light (C) = $1
.05
Holding cost = $0.1 per light per year
Production p= 100 lights per day
Usage (d) = 12,500/300 days = 41.66(round up to 42)
= 42 lights per day
a) What is the optimal sizeof the production run?
Q =√{(2×D×S) / (H(1-(d / p)))}
Q =√{(2×12500×51)/(0.1(1-(42/100)))}
= 4688.577 = 4689 units
Q = 4689 units
b) What is the average holding cost per year?
Average holding cost per year = average inventory level * H
= (Q/2)H[1- (d/p)]
= (4689/2)0.1[1-(42/100)]
= $135.98
c) What is the average setup cost per year?
average setup cost per year = (D/Q)S
= (12,500/4689)× 51
= 135.97
d) What is the total cost per year, including the cost of the lights?
Total cost = D*C + total set up cost + total holding cost
12,500 ×1.05 + 135.98 + 135.97
Total cost = $ 13,396.95
Before 2008, the investment bankers thought that buying home mortgages was a good and safe investment because it was a stable investment, which is less impacted by inflation.
The “subprime” mortgages were more riskier than “prime” mortgages because the lender were more likely to default the mortgage.
<h3>What was the event "
Crisis of Credit" about?</h3>
The Crisis of Credit, also known as the financial crisis of 2008 or Global Financial Crisis referred to a severe worldwide economic crisis that occurred in the early 21st century. It was considered the most serious financial crisis since the Great Depression (1929).
In 2008, the financial crisis began with cheap credit and lax lending standards that fueled a housing bubble. When bubble burst, all banks were left holding trillions of dollars as worthless investments in subprime mortgages and the Great Recession that followed cost many their jobs, their savings and their homes.
Read more about Crisis of Credit
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Answer:
adding up consumption, investment, government expenses, and net exports
adding up the market prices of final goods and services produced in the U.S
adding up the incomes of producers and taxes paid to the government
Explanation:
GDP is a measure of the sum value of a country's output in a given period. The GDP value reflects economic growth or decline in a country for the period under review.
GDP is calculated using three methods. They include the income, production, and expenditure approach.
In the Income approach, economists add up all the earnings from the factors of production. Wages and salaries of all employees; the profits from businesses and corporates' ; rents, and interests form landlords are summed up to get GDP. Adjustments are made to cater for the taxes paid to the relevant government agencies. ( 4th option)
The production approach involves getting the value of all the finished consumer goods and services in the economy. The approach excludes intermediary goods and work-n progress. GDP is obtained by adding the total of the finished products and services and multiplying them by their prices. (3rd option)
The consumption option applies a formula that GDP = C+G+I+ NX, where C is private consumption expenditure, G is government consumption and investment expenditure, and I in private investment expenditure. NX is the net imports. ( 1 st option )
Answer:
The equilibrium expected rate of return is higher for Kaskin than for Quinn.
Explanation:
Option A “The equilibrium expected rate of return is higher for Kaskin than for Quinn” is more accurate because the expected return is calculated by multiplying the risk premium with beta value and then adding with risk-free return. However, if the beta value is high, then the magnitude after multiplying with the risk premium will be high. Moreover, is magnitude will be added to risk-free return to find the expected return. Thus, it can be seen that Kaskin has high beta 1.2 as compared to Quinn’s beta value 0.6. So, the Kaskin has a higher expected return.
