Answer:
b. the implied warranty of merchantability
Explanation:
Implied warranty of merchantability refers to an implied assurance, in every sales transaction that the seller's goods are safe and fit for intended purpose of usage.
It represents an unspoken guarantee on the part of the seller that his goods conform to the acceptable standards and properly packaged and labeled and abide by the promises conveyed on their label.
The motive behind such a warranty being, the seller must properly inspect and test the quality of his goods before releasing them or making them available for sale in the market.
In the given case, the seller sold skis to the customer which cracked into two upon usage. The seller isn't aware of the cause of the consequence. Thus, the seller breached the principle of implied warranty of merchantabilty as per which, it should've first checked and inspected the skis before making them available for sale.
10,000-15,000 american dollars
Answer:
a) 10
b) 85
Explanation:
a)
The safety stock is gotten by multiplying the standard deviation with the appropriate z value (demand and service level).
THe z coefficient of service level of 95% is 1.64
So we multiply the SD (standard deviation) with 1.64
Safety Stock = 6 * 1.64 = 9.84 = 10
b)
Now, the reorder point.
Reorder Point = Lead Time Demand + Safety Stock
It is already given that Lead TIme Demand is 75 and we found Safety Stock to be 10, so:
Reorder Point = 75 + 10 = 85
Answer:
B) False
Explanation:
CAPM formula for a stock's expected rate of return is as follows;
CAPM r = risk free rate + beta (rM - risk free rate)
r = expected return
rM = market return
As is seen in the above formula, the return is determined by the beta of the stock, risk free rate and the market return. If the beta of the stock increases assuming the market return and the risk-free rate remain constant, the stock's return will also increase and vice versa.
Answer:
(a) $2.80; 3.40
(b) $1,400,000; $1,700,000
Explanation:
(a) Standards are stated as a per unit amount.
Therefore,
standard materials:
= Total estimated cost for materials ÷ Estimated production of Product X
= $1,400,000 ÷ 500,000
= $2.80
Standard labor:
= = Total estimated cost for labor ÷ Estimated production of Product X
= $1,700,000 ÷ 500,000
= $3.40
(b) Budgets are stated as a total amount.
Thus, the budgeted costs for the year are materials $1,400,000 and labor $1,700,000.
