Answer:
n= 65.27 years
Explanation:
Giving the following information:
Present value (PV)= $2,000
Future value (FV)= $4,500
Interes rate (i)= 1.25% annual compounding
<u>To calculate the number of years required to reach the objective, we need to use the following formula:</u>
n= ln(FV/PV) / ln(1+i)
n= ln(4,500 / 2,000) / ln(1.0125)
n= 65.27 years
Answer:
The answer is B.
Explanation:
Total variable cost always increases as output(unit of production) increases. And it also decreases with decreasing output(unit of production).
Variable cost is different from fixed cost in that it changes with output.
Answer:
The computations are shown below:
Explanation:
a. The computation of the economic order quantity is shown below:
= 229 units
The carrying cost is come from
= $2.40 × 20%
b. Time between placement of orders is
= Economic order quantity ÷Annual demand
= 229 ÷ 280
= 0.8179 years
So,
= 0.8179 × 365 days
= 298.53 days
We assume 365 days in a year
c. The average annual cost of ordering cost and carrying cost equals to
= Holding cost + ordering cost
= (Economic order quantity ÷ 2 × Holding cost) + (Annual demand ÷ Economic order quantity × ordering cost)
= (229 units ÷ 2 × $0.48) + (280 ÷ 229 units × $45)
= $54.96 + $55.02
= $109.98
d)
Now the reorder level is
= Demand × lead time + safety stock
where, Demand equal to
= Expected demand ÷ total number of weeks in a year
= 280 pounds ÷ 52 weeks
= 5.38461
So, the reorder point would be
= 5.38461 × 3 + $0
= 16.15 pounds
Explanation:
1. If butter complements margarine for instance, and there occurs a sudden increase in the price of butter leading to lower demand, this would affect the demand for margarine negatively leading to a fall in the demand for margarine.
2. If this goods are substitutes the demand for butter will increase when the price of margarine rises.
This is because it is only natural for people to switch to the next best alternative (substitute) that fills the same purpose or needs.
3. Remember Ice cream and ice cream cones complementary goods; meaning the demand for one increases the demand for the other and vice versa.
4. If the price of ice cream increases, demand would also decrease for ice cream as consumers are usually sensitive to price.
This decrease in the demand for ice cream would also affect ice cream cones since they complement each other, leading to a decrease in the demand for ice cream cones.
Answer:
My savings
Explanation:
Savings for a month is the amount left after deducting all my expenditure from my monthly income
Savings = income - total expenditure
income = $2,000
total expenditure = $200 + $1,000 + $400 + $200 = $1,800
Savings = $2,000 - $1,800 = $200
