I would ask them if they were comfortable with a fluctuating rate, which though at the moment is lower than the fixed rate, could go up in the future. I would also ask them if they needed to be sure of the rate say for example for a 5 year term like in a mortgage for peace of mind or if they are willing to take a risk with the fluctuations. If the latter, I would tell them that at any time they could lock it in for a 5 year term if they saw it going up.
Answer:
The correct statement is: "The fixed cost per unit will decrease when volume increases."
Explanation:
Total fixed costs remain the same within a relevant range, but the <em>fixed cost per unit</em> decreases as production increases, because the same fixed costs are spread over more units produced.
Answer and Explanation:
The computation is shown below
a. The economic order quantity is
= sqrt ((2 × annual demand × ordering cost) ÷ carrying cost)
= sqrt ((2 × 1,215 × $10) ÷ $75)
= 18 units
b) Average number of bags on hand is
= EOQ ÷ 2
= 18 ÷ 2
= 9
c) Orders per year is
= D ÷ EOQ
= 1215 ÷ 18
= 67.5
= 68
d) Total cost = Total carrying cost+ Total ordering cost
= (Q ÷ 2)H +(D ÷ Q)S
= (18 ÷ 2)75 + (1215 ÷ 18) × 10
= 675 + 675
= $1350
When you invest your money, it is likely that in future your purchasing power will A. go up and down.
<h3>What will happen to your purchasing power?</h3>
If you invest your money today, there is a chance that you will get back more money than you deposited, or less than you deposited.
This means that you will either have more money or less money to purchase goods and services. In other words, your purchasing power will go up and down.
Find out more on purchasing power at brainly.com/question/2286004.
