Answer:
c. When ordering or setup costs increase, Economic Order Quantity increases
Explanation:
In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.
Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.
In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity
Answer:
e. the expected return on a security is positively and linearly related to the security's beta.
Explanation:
As per CAPM: Expected return (ER) = Rf + \beta (Rm - Rf)
Lets assume risk free return (Rf) as 5%, \beta as 2 and expected market return (Rm) as 10%
then, ER = 5% + 2 (10% - 5%) = 15%
However if lets assume all the other factors remain the same and \beta increases to 3
then, ER = 5% + 3 (10% - 5%) = 20%
Similarly if \beta reduces to 1
then, ER = 5% + 1 (10% - 5%) = 10%
So higher the \beta higher is the risk and hence higher the expected return. Hence expected return on a security is positvely and linearly related to the security's beta
Answer:
$72,679.976
Explanation:
The computation of present value is shown below:-
Present value = Future value ÷ (1 + Rate of return)^Number of years
= $95,000 ÷ (1 + 3.9%)^7
= $95,000 ÷ (1 + 0.039)^7
= $95,000 ÷ (1.039)^7
= $95,000 ÷ 1.307100055
= $72,679.97553
or
= $72,679.976
Therefore for computing the present value we simply applied the above formula.
Answer:
group 1 Markup = 0.333
group 2 Markup = 0.25
group 1 price = $79.98
group 2 price = $75
Explanation:
given data
Group 1 elasticity of demand = -4
Group 2 elasticity of demand = -5
marginal cost = $60
to find out
optimal markups and prices under third degree price discrimination
solution
we get here Under Markup pricing that is for group 1 and 2 is
Markup is = 
.....................1
so for group 1 Markup = 
group 1 Markup = 0.333
and
for group 2 Markup = 
group 2 Markup = 0.25
and
price will be
price = ( 1 + markup) × Marginal cost ...................2
group 1 price = ( 1 + 0.333 ) x 60
group 1 price = $79.98
and
group 2 price = ( 1 + 0.25 ) x 60
group 2 price = $75
Answer:
its cold outside thats the answer
Explanation:
