Answer:
The computations are shown below:
Explanation:
a. The computation of the economic order quantity is shown below:
= 229 units
The carrying cost is come from
= $2.40 × 20%
b. Time between placement of orders is
= Economic order quantity ÷Annual demand
= 229 ÷ 280
= 0.8179 years
So,
= 0.8179 × 365 days
= 298.53 days
We assume 365 days in a year
c. The average annual cost of ordering cost and carrying cost equals to
= Holding cost + ordering cost
= (Economic order quantity ÷ 2 × Holding cost) + (Annual demand ÷ Economic order quantity × ordering cost)
= (229 units ÷ 2 × $0.48) + (280 ÷ 229 units × $45)
= $54.96 + $55.02
= $109.98
d)
Now the reorder level is
= Demand × lead time + safety stock
where, Demand equal to
= Expected demand ÷ total number of weeks in a year
= 280 pounds ÷ 52 weeks
= 5.38461
So, the reorder point would be
= 5.38461 × 3 + $0
= 16.15 pounds
Answer:
$1,950 more than expected
Explanation:
In this question ,we have to compare the revenues based on expected and the actual
So, the expected revenues would be
= Number of customers × per hour rate × expected time spent
= 30 customers × $26 × 8 hours
= $6,240
And, the actual revenues would be
= Number of increased customers × per hour rate × average time spent
= 42 customers × $26 × 7.5 hours
= $8,190
The revenue is increased by
= $8,190 - $6,240
= $1,950 more than expected
This is the answer but the same is not provided in the given options
Answer:
It will lead to an increase in consumption of good X only if X is a normal good ( D )
Explanation:
If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .
This is because the demand for Normal goods increases with increase in consumers income. therefore <em>a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.</em>
Answer:
The correct answer is C. loyalty.
Explanation:
The segmentation on basis of customer loyalty is done on following grounds
• The most valuable market, channel, product and customer segments
• Key decision makers and influencers
• Critical needs and wants for each segment
• Future needs
• Measures of customer satisfaction and loyalty
• Brand and competitive equity benchmarking
• Value proposition alternatives for each segment
• A trade-off analysis for features vs. price
Answer:
B
Explanation:
A currency appreciates when its value increases.
For example if $1 was exchanged for 50 pesos. After appreciation of the pesos, $1 would buy $25 pesos.
So more $2 would be needed to buy 50 peso after the appreciation when before the appreciation $1 was buying 50 pesos.
As a result Mexican goods would become more expensive to US consumers and the revenue earned by Mexican producers would increase
