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Korolek [52]
3 years ago
6

Henrique​ Correa's bakery prepares all its cakes between 4 A.M.and 6 A.M.so they will be fresh when customers arrive.​ Day-old c

akes are virtually always​ sold, but at a​ 50% discount off the regular ​$8 price. The cost of baking a cake is ​$5​, and demand is estimated to be normally​ distributed, with a mean of 20 and a standard deviation of 7. What is the optimal stocking​ level?
Business
1 answer:
romanna [79]3 years ago
7 0

Answer:

24.7215

Explanation:

Given;

Discount = 50%

Regular price, p = $8

cost of cake, c = $5

salvage value, s = 50% of $8 = $4

Mean = 20

Standard deviation, σ = 7

Now,

Underage cost, Cu = p - c

= $8 - $5

= $3

Overage cost, Co = c - s

= $5 - $4

= $1

P ≤ \frac{C_{u}}{(C_{u}+C_{o})}

P ≤  \frac{3}{(3+1)}

P ≤ 0.75

The Z value for the probability 0.75 is 0.6745

The optimal stocking level = Mean + ( z × σ )

= 20 + 0.6745 × 7

= 24.7215

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Aleks04 [339]

Answer:

Firm's overhead/Overhead Under Applied=$3,000

Explanation:

First calculate predetermined overhead:

Predetermined overhead= Estimated Overhead / Estimated labor hour

Predetermined overhead=\frac{\$160,000}{20,000}

Predetermined overhead=$8 per labor hour

Overhead Applied=Predetermined overhead * actual direct professional labor hours..

Overhead Applied=$8 per labor hour*19,500

Overhead Applied=$156,000

Since Overhead Applied is less than actual overhead, so difference is under applied.

Overhead Under Applied=Actual overhead costs-Overhead Applied

Overhead Under Applied=$159,000-$156,000

Firm's overhead/Overhead Under Applied=$3,000

8 0
3 years ago
On March 1, Gismo Co. began construction of a small building. Payments of $2,400,000 were made monthly for three months beginnin
katrin2010 [14]

Answer:

$1,200,000

Explanation:

Gismo Co weighted-average accumulated expenditures

$2,400,000 (3/12 + 2/12 + 1/12)

=$2,400,000 ×0.5

= $1,200,000

Therefore In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are $1,200,000

6 0
3 years ago
Edison's Lights makes light bulbs. The company is currently producing well below its full capacity. Lamp Land has approached Edi
Korvikt [17]

Answer:

the increase in Edison's Lights' operating profits would be  $400

Explanation:

<u>Analysis of the effects of Accepting Lamp Land's offer</u>

Sales (20,000 x $0.75)                                   $15,000

Less Incremental Costs :

Variable Cost (20,000 x $0.73)                     ($14,600)

Operating Profit                                                    $400

thus

If Edison's Lights were to accept Lamp Land's offer, the increase in Edison's Lights' operating profits would be  $400

5 0
2 years ago
What is the safest way to make sure you are using a copyrighted image fairly? A. Do a Google image search. B. Save the image to
Gennadij [26K]

Answer:

Ask the CopyRight Owner for Perrmission

Explanation:

Asking the copyright owner for permission is the safest way to make sure you are using a copyrighted image fairly.

8 0
3 years ago
The Wyeth Corporation produces three products, A, B, and C, from a single raw material input. Product A can be sold at the split
Degger [83]

Answer:

It is preferable to further process Product A.

Explanation:

Product should be processed further before sale if the net incremental benefits from further processing is positive.

The net incremental benefits from further processing is increase in revenue when further processed less further costs of processing.

Increase in revenue=$58,000-$40,000

                                 =$18,000

Further processing costs=$15,000

Net incremental benefits=$18,000-$15,000

Net incremental benefits=$3,000

Since processing further brings a net benefit of $3,000, Product A should be further processed before being sold.

8 0
3 years ago
Read 2 more answers
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