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Savatey [412]
2 years ago
14

Consider a firm with a daily demand of 100​ units, a production rate per day of 500​ units, a setup cost of​ $200, and an annual

holding cost per unit of​ $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to​ hold? A. 1095 B. 9798 C. 980 D. 1081 E. 1225 F. 876
Business
1 answer:
podryga [215]2 years ago
6 0

Answer: 980

Explanation:

The number of units of inventory that the storage area must be able to​ hold will be calculated as:

Demand = 100 × 300 = 30000

Production rate per day = 500

Setup cost = $200

Annual holding cost = $10

We then use the economic order quantity formula to solve and the answer will be gotten as 1225

The maximum inventory will now be:

= EQQ × (1-d/p)

= 1225 × (1-100/500)

= 1225 × ( 1 - 0.2)

= 1225 × 0.8

= 980

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Answer:

The correct option is c. raise G by $30 or reduce T by $40.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

(Advanced analysis) Answer the question on the basis of the following information for a mixed open economy. The letters Y, Ca, Ig, Xn, G, and T stand for GDP, consumption, gross investment, net exports, government purchases, and net taxes respectively. Figures are in billions of dollars.

Ca = 25 + 0.75(Y - T)

Ig = Ig0 = 50

Xn = Xn0 = 10

G = G0 = 70

T = T0 = 30

Refer to the information. If government desired to raise the equilibrium GDP to $650, it could:

a. raise G by $45 or reduce T by $10.

b. raise G by $40 and reduce T by $30.

c. raise G by $30 or reduce T by $40.

d. raise both and T by $40.

e. reduce G by $30 and increase T by $40.

The explanation of the answer is now provided as follows:

Equilibrium GDP (Y) can be obtained as follows:

Y = C + G + I + Xn …………………….. (1)

Substituting all the values in the question into equation (1) and solve for Y, we have:

Y = 25 + 0.75(Y - 30) + 70 + 50 + 10

Y = 0.75Y - 22.50 + 155

Y – 0.75Y = 132.50

0.25Y = 132.50

Y = 132.50 / 0.25

Y = 530

Therefore, we have:

Y = Current equilibrium GDP = $530

Amount of increase in equilibrium GDP required = Desired equilibrium GDP – Current equilibrium GDP = 650 - 530 = 120

From the question, we have:

Ca = 25 + 0.75(Y - T) ………………. (2)

The 0.75 in equation (2) is the marginal propensity to consume (MPC). Therefore, we have:

MPC = 0.75

Expenditure multiplier = 1 / (1 - 0.75) = 4

Tax multiplier = - MPC / (1 – MPC) = -0.75 / (1 – 0.75) = -3

Amount of increase in G or government expenditure required = Amount of increase in equilibrium GDP required / Expenditure multiplier = 120 / 4 = $30

Amount of tax cut or decrease in T required = Amount of increase in equilibrium GDP required / Tax multiplier = 120 / (-3) = -$40

Therefore, correct option is c. raise G by $30 or reduce T by $40.

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e. Project X has both a higher present value and a higher future value than Project Y.

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The future value of Project X will also be higher than project Y because it has higher cash flows in earlier years. When future value will be calculated the project X will give the higher Future value than project Y.

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What best determines whether a borrower's investment on an adjustable rate loan goes up or down?
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Market condition is the correct answer.
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In the market experiment with​ taxes, after the excise tax is imposed on the market A. the price paid by buyers decreases and th
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company pays each of its workers on a per diem basis. if another worker is​ hired, fixed costs will increase while variable cost
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A company pays each of its workers on a per diem basis. If another worker is​ hired,

variable costs will increase while

fixed cost will remain the same.

<h3>What is the difference between fixed and variable?</h3>
  • The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable expenses. Regardless of the level of production, fixed expenses stay constant. Lease and rental payments, insurance, and interest payments are fixed costs.
  • Costs that change as the volume increases are known as variable costs. Raw materials, piece-rate labor, production supplies, commissions, shipping expenses, packing costs, and credit card fees are a few examples of variable costs. The "Cost of Goods Sold" is the name given to the variable costs of production in some accounting statements.
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A company pays each of its workers on a per diem basis. If another worker is​ hired,

variable costs will increase while

fixed cost will remain the same.

To learn more about fixed cost, refer to:

brainly.com/question/3636923

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