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loris [4]
3 years ago
12

In a particular setting where the newsvendor model applies, demand is Normally distributed and the critical ratio is 0.4. Then,

if the profit maximizing quantity (i.e., the Newsvendor ordering quantity) were ordered:_________
a. the expected sales is less than expected demand;
b. the expected sales is greater than expected demand;
c. the expected sales is exactly equal to expected demand;
d. the expected sales could be less than, equal to or greater than expected demand.
Business
1 answer:
Alja [10]3 years ago
3 0

Answer: C. the expected sales is exactly equal to expected demand;

Explanation:

The newsvendor model refers to the mathematical model that is used in the determination of optimal inventory levels. This model is characterized by uncertain demand and fixed prices for a good that's perishable e.g newspapers.

In this model, there can be a high profit only in a scenario whereby the demand and the supply is met. Therefore, if the profit maximizing quantity were ordered, the expected sales is exactly equal to expected demand.

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I think it’s a loss of $1,000. To be honest I don’t believe the Math adds up to be any of the answers.

5 0
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Analysis of a company's financial statements: Below are simplified versions of the balance sheet and income statement for Toys b
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Answer:

The answer is:

A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to 4.8 times, suggesting improvement in efficiency.

Explanation:

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=> An 15% increase in the Inventory turnover will bring the Inventory turnover ratio to: 4.17 x 1.15 = 4.8 times;

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3 years ago
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gogolik [260]

Answer: The optimal capital structure maximizes the firm’s stock price.

Explanation:

The Capital Structure of a company refers to the proportion of debt vs equity that it chooses to use to fund its Assets and operations.

The goal of management is to use the capital structure to fund the company in such a way that the market value of a company increases.

The Market value is reflected by the firm's stock price so the optimal capital structure is meant to maximize the firm’s stock price.

8 0
4 years ago
Which is the main reason why IT professionals need to pursue continuing education and self-directed learning?
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5 0
3 years ago
Each of the following is mentioned in your textbook as a tip for using statistics except:________ a. use statistics sparingly. b
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Answer:

E. avoid using statistics found on the Internet.

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