Insurance is a transfer of the risk of economic loss from the insured to the insurance company.

1. Harley Davidson has its engine plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported

Serggg [28]

Answer:

Company should load 1,479.9 motorcycles on each truck.

Explanation:

Cost per trip = $1,000

Demand for motorcycles = 300 per day

Cost per engine = $500

Holding cost = 20% of $500

= $100

Assuming that company plant works for 365 days in a year,

Annual demand = 300 motorcycles × 365 days

= 109,500 motorcycles

$Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2DS}{H}}$

where,

D = Annual demand in units

S = Set up cost per order

H = Handling cost per order

$Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2\times109,500\times1,000}{100}}$

$=\sqrt{\frac{219,000,000}{100} }$

$\sqrt{2,190,000}$

= 1,479.9

Thus, the company should load 1,479.9 motorcycles on each truck.

5 0

3 years ago

ABC Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjust

saul85 [17]

Answer:

ABC has a gain of $145,000 and Andre's dividend income is $130,000

Explanation:

Property ABC issued, has the following:

fair market value = $350,000

Adjusted basis = $205,000

Liability = $220,000

Calculate ABC's Corporation gain:

Gain = market value - Adjusted basis

= $350,000 - $205,000

= $145,000

ABC has a gain of $145,000

Calculate Andre's dividend income since he is the sole shareholder:

Dividend earnings = fair market value - liability

= $350,000 - $220,000

= $130,000

Andre's dividend income is $130,000

Correct option is D.

With respect to distribution, ABC has a gain of $145,000 and Andre's dividend income is $130,000

8 0

3 years ago

Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing

frutty [35]

Answer: Economies of scale

Explanation:

Economies of scale occurs when there is a reduction in cost as a result of an increase in production. Economies of scale are the cost advantages which a business can exploit through the expansion of its scale of production. The aim of economies of scale is to lower the average costs of production.

When the car manufacturer diversifies his operation by producing pickup trucks and SUVs, there'll be a reduction in the average unit cost of output. This term refers to Economies of scale.

4 0

3 years ago

Read 2 more answers

Sales promotions that provide consumers an incentive to buy a product, such as a cents-off coupons or a discount, are widely use

Nady [450]

Answer:

it is challenging to track usage of the coupons

Explanation:

Coupons are defined as an instrument that is used to obtain a discount or rebate when making a purchase.

Stores usually give out coupons to customers as an incentive to by products.

However there will be challenge of tracking the coupons as well as the discount on each coupon.

Coupons are given at different discount rates at different times, so it is cumbersome to track a particular coupon out of the many issued when customer wants to redeem it

6 0

2 years ago

Which one of the following items would you be most likely to keep in a database ?

ser-zykov [4K]

Payroll records would most likely to keep in a database. It keeps it more safer for the future use.

7 0

3 years ago

Read 2 more answers