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Answer:
110,000 units
Explanation:
<u>Calculation of the equivalent units of production for materials in June</u>
Beginning work in process 20,000
Units started and completed (90,000-10,000) 80,000
Ending work in process <u>10,000</u>
Equivalent units of production for materials for June <u>110,000</u> units
Answer
D) compared to the EOQ, the maximum inventory would be approx 30% lower.
Explanation
EOQ = √(2*Co*D/Cc)
EPQ= √ (2*Co*D/(Cc*(1-x)))
x=D/P
D = demand rate
P =production rate
Co=ordering cost
Cc=holding cost
1) The production rate would be about double the usage rate.
hence, P = 2D
x=D/2D=0.5
EPQ= √ (2*Co*D/((1-0.5)*Cc))
EPQ= √ (2*Co*D/0.5Cc)
EPQ=√ (1/0.5)*EOQ
EPQ=√ (2)*EOQ
EPQ=1.41*EOQ
Hence, EPQ is around 40% larger than EOQ.
Ans.: c) EPQ will be approximately 40% larger than the EOQ.
2) Compared to the EOQ, the maximum inventory would be
maximum inventory = Q
EPQ = 1.41 EOQ
EPQ = 1.41*Q
Q=EPQ/1.41
Q=0.71 EPQ
Hence, compared to EOQ, maximum inventory in EPQ is only 70% of that in EOQ model.
Answer: C. marginal product of the last worker hired is less than the marginal product of the previous worker hired
This statement is correct because marginal product refers to the increase in the production, when 1 worker is added to the production process. Diminishing marginal returns set in when adding one extra worker increases the production less than the previous worker did.
Explanation:
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