6,200 pounds of raw materials should be purchased in July.
<h3>
What are raw materials?</h3>
- Raw materials are the goods or inventories required by a company to make its products.
- Steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals are examples of raw materials.
The raw material purchases for July are computed as follows:
- Required production in units of finished goods.
- Units of raw materials needed per unit of finished goods.
- Units of raw materials are needed to meet production.
- Add desired units of ending raw materials inventory.
- Total units of raw materials needless units of beginning raw materials inventory.
- Units of raw materials to be purchased.
71,000 pounds × 10% = 7,100 pounds.
62,000 pounds × 10% = 6,200 pounds.
Therefore, 6,200 pounds of raw materials should be purchased in July.
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The correct question is given below:
If 71,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
Answer:
The expectation would be for the quantity supplied to increase more this summer than in the following summers.
Explanation:
The quantity supplied would increase because the quantity supplied always follows the same direction as price, and since the price is not expected to change for a few years, then the quantity will also not change after the first increase.
Answer:
The value of the levered firm $31,125
Explanation:
Value of Firm is the value of present value of expected future earning. It is calculated by dividing the earning after tax by the cost of capital while considering that the business will operate for the foreseeable future time.
EBIT $4,250.00
Less
Interest <u>$0.00 </u>
EBT $4,250.00
Tax 35% x 4250 <u>$1,487.50</u>
EAT <u>$2,762.50</u>
Cost of Capial 10%
Value of firm = EAT / Cost of Capital = $2,762.5 / 10% = $27,625
Debt after tax = $10,000 x ( 1 - 0.35 ) = $6,500
Value of Equity = Value of firm - Debt after tax = $27,625 - $6,500 = $21,125
Value of debt = $10,000
Value of levered Firm = $21,125 + $10,000 = $31,125
Answer:
<em>The correct answer is:</em> cost leadership
Explanation:
According to Porter, every company has a strategy, whether planned or unplanned, being directly influenced by the environment in which it operates and by the industries and competitive sector. For him, companies should use the generic strategies mentioned by him so that they can survive the five competitive forces of the industry. Porter's generic strategies are: cost leadership, differentiation and focus.
The most appropriate generic strategy for the above question is cost leadership, whose central objective is to achieve total leadership in a given sector, using appropriate policies and procedures for that purpose.
The objective is achieved when a company develops a quality structure that brings together efficient equipment, qualification of personnel and control of expenses in order to maintain a low cost that generates greater returns for the company than those of its competitors.
The correct answer should be d. Identify the problem.
