Which questions about risk should someone ask before making a big purchase? Check all that apply.

High Plains Inc. manufacturers furniture in North Dakota. High Plains receives its wood from a lumber yard in Calgary. The lead

ArbitrLikvidat [17]

Answer:

a. On average, the number of boards they have on order = 1,056 boards.

b. On average, the number of boards they have =560 boards.

c. Total holding cost per week = $140.

d. Holding cost incurred per board = $ 0.25.

Explanation:

In the question, the details given are:

Service level =96 %

Lead time =3 weeks

Weekly demand =150

Standard deviation=200

This is a case of variable demand and constant lead time

a. Reorder point =Demand during lead time +Safety stock

=Average weekly demand*lead time+z*sqrt(lead time)*standard deviation of weekly demand

=150*3+NORMSINV(0.99)*sqrt(3)*200

=450+1.7507*sqrt(3)*200

=450+606.46=1,056.46

=1,056 (nearest whole number).

On average, the number of boards they have on order = 1,056 boards.

b. For a normal distribution,

z=x-mean/std deviation

z-value for a 96% confidence level = 2.05

2.05=x-150/200

x = 150+2.05*200=560

On average, the number of boards they have =560 boards.

c.Total holding cost per week=Average inventory *holding cost per week=560/2 *0.5=280*0.5 =$140

d.Holding cost incurred per board =Total holding cost /Number of boards =140/560 = $ 0.25.

5 0

3 years ago

Several years ago, the City of Russell issued $7 million of 6 percent serial bonds at 101. Principal payments of $350,000 are du

Sphinxa [80]

Answer:

the interest payable is $210,000

Explanation:

The computation of the interest payable is shown below:

= Principal payments × rate of interest × no of months ÷ total no of months × time period

= $350,000 × 6% × 6 months ÷ 12 month × 20years

= $210,000

hence, the interest payable is $210,000

The same should be considered and relevant

8 0

3 years ago

If average product is increasing, then marginal product Select one: a. must be greater than average product. b. must be less tha

netineya [11]

Answer: Option (a) is correct.

Explanation:

Figure attached with this answer shows the two curves, namely, average product curve and marginal product curve.

Marginal product refers to the change in the total output divided by the change in the quantity of inputs used.

Average product is calculated by dividing the total output produced with the quantity of inputs or factors of production used.

The relationship between marginal product and average product is explained by three phases:

(1) Average product is rising,

Marginal product is greater than the average product.

(2) Average product is maximum,

Marginal product is equal to average product.

(3) Average product is falling because of diminishing marginal utility,

Marginal product is less than the average product.

4 0

3 years ago

I NEEDDDD HELLPPPPP!!!!!!!!!!!!!!!!!!!!

Usimov [2.4K]

With what finding a job?

4 0

3 years ago

Read 2 more answers

The common stock of sweet treats is valued at $10.80 a share. the company increases its dividend by 8 percent annually and expec

N76 [4]

Using the Gordon Growth Model (a.k.a. Dividend Discount Model), the intrinsic value of a stock can be calculated, exclusive of current market conditions. In this model, the value of the stock is equated to the present value of the stock's future dividends.

Value of stock (P0) = D1 / (k - g)

where
D1 = expected annual dividend per share in the following year 
k = the investor's discount rate or required rate of return
g = the expected dividend growth rate

From the problem:
The value of stock is $10.80
D1 is $0.40
g is 0.08

k is unknown

Solution:
Rearranging the equation for Gordon Growth Model to solve for k:

k = (D1/P0) + g

Substituting the variables with the given values,

k = (0.40/10.80) + 0.08
k = 0.1170

In percent form, this is
0.1170 * 100% = 11.70%.

Thus, the total rate of return on the stock is 11.70%.

3 0

4 years ago