The answer of the question is True.
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Answer:
False
Explanation:
The correct answer is false because the interest rate does affect the intertemporal budget constraint.
A higher interest rate, will cause the budget line to pivot upwards while a lower rate will make the budget line to pivot downward.
The intertemporal budget constraint can used to show a decision on how to save. It refers to the constraint which an individual encounters when making choices for the present and for the future. It reflects a consumer's decision on the amount to consume in the present and the amount to save in the future.
Answer:
The company should order 100 units to minimize total inventory cost.
Explanation:
Given,
Annual Demand, D = 2,000 units
Order cost, S = $20
Purchase cost = $40
Holding cost, H = Purchase cost x percentage of holding cost
Holding cost = $40 × 20%
Holding cost = $8
We know, the company should order the highest number of products with a minimum cost, and for that, the company uses economic order quantity. Hence,
Economic Order Quantity (EOQ) = 
EOQ = 
EOQ = 
EOQ = 100
Answer:
Net Income is $485.4
Explanation:
According to the accounting equation
Assets = Equity + Liabilities
So putting value of assets = 3,525, and assuming equity = x, then:
3252 = Liabilities + x
Liabilities = 3252 - x
Now putting this value in the debt to equity formula,
Debt / Equity = 0.34
(3252 - x) / x = 0.34
3252 - x = 0.34x
1.34x = 3252
x = 3252 / 1.34 = $2427 This is the value of equity.
Now
Return on Equity = Net Income / Equity
and return on equity is $2427, so by putting values in the equation, we have:
0.20 = Net Income / 2427
Net Income = $485.4
Answer:A. LN, JQ, RQ
Explanation:
To know the current profitability, we need to determine the contribution margin unit by the minutes on the constraints .
a) For LN
Contribution by unit = Selling price per unit- Variable cost per unit
$ 161.88 -$116.12 = $45.76
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $45.76/ 2.60 = 17.60
B) For JQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 350.41 -$279.11 = $71.3
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $71.3/ 4.60 = 15.50
c) For RQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 446.71 -$338.71 = $108
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $108/ 7.50 = 14.40
In order of their current profitability from most profitable to least profitable, We have LN with 17.60, next JQ with 15.50 and the least RQ with 14.40
