Most couples get engaged to marry before they actually get married. At one time, such an agreement to marry was considered a legally binding contract and if the engagement was broken without lawful justification, the person responsible could be sued for damages for breach of promise
I found the problem at https://www.coursepaper.com/econ-81640/
The choices were;
A. Joe should drive to the warehouse because $1,000 is less than $1,200.
B. Joe should drive to the warehouse if his cost of driving to the warehouse is less than $200.
C. Joe should drive to the warehouse if his cost of driving to the warehouse is greater than $200.
D. Joe should drive to the warehouse because the $200 he would save by driving to the warehouse is more than 10% of the purchase price.
The best answer would be letter d. Joe should drive to the warehouse because the $200 he would save by driving to the warehouse is more than 10% of the purchase price.
Joe can save more if he rather drives his purchased computer to his home than have a delivery. The cost of delivery was too high.
Answer:
$261.42
Explanation:
economic order quantity (EOQ) = √(2SD/H)
S = cost per order = $31
D = annual demand = 776 x 12 = 9,312
H = holding cost = $9 x 36% = $3.24
EOQ = √[(2 x $31 x 9,312) / $3.24] = √178,192.59 = 422.13 ≈ 422
total ordering and holding costs considering EOQ:
ordering costs = (9,312 / 422) x $31 = $684.06
holding costs = $3.24 x (422/2) = $683.64
total = $1,367.70
current costs:
ordering costs = $31 x 12 = $372
holding costs = $3.24 x (776/2) = $1,257.12
total = $1,629.12
annual savings = $1,629.12 - $1,367.70 = $261.42
