Answer:
Annual ordering cost=$32.142
Explanation:
Annual ordering cost = Annual demand/order quantity × ordering cost per order
Annual demand = 15 × 12 = 180 units
Kindly note that there are 12 months in year.
Annual Ordering cost = 180/28 × $5= $32.142
Annual ordering cost=$32.142
Answer:
The budgeted materials need in liters for April is $54,800 liters.
Explanation:
For computing the needed budgeted material for April month, following equation is used which is shown below:
= Budgeted raw material + closing inventory - opening inventory
where ,
budgeted raw material for April month is $56,000 liters
Closing inventory is 30% of following month which equals to
= 52,000 × 30%
= 15,600 liters
and, opening inventory is given i.e. 16,800 liters.
Now, apply these values to the above equation which equals to
= $56,000 + $15,600 - $16,800
= $54,800 liters
Thus, the budgeted materials need in liters for April is $54,800 liters.
Answer:
A
Explanation:
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.
Supply is inelastic if a small change in price has little or no effect on quantity supplied. The absolute value of elasticity would be less than one
The short run is a period where all factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down
The long run is a period where all factors of production are varied. It is known as the planning time for a company
Supply is more elastic in the long run than in the short run because the producer can make adjustments in the long run
