Answer:
The EOQ is 353 units
Explanation:
The economic order quantity or EOQ is the quantoty that minimized the holding and ordering cost for invetory.
The formula for EOQ is,
EOQ = √(2*D*O) / H
Where,
- D is the annual demand in units
- O is the ordering cost per order
- H is the holding cost per unit per annum
The annual demand of oil filters by Sam is,
Annual demand = 52 * 150 = 7800 filters
The EOQ for Sam Auto Shop is,
EOQ = √(2*7800*16) / 2
EOQ = 353.27 Units rounded off to 353 units
Answer:
4*0.07=energy use per day(x)
(x)*30=energy use in thirty days (y)
Therefore
X=$0.28
Y=$8.4
Explanation:
Answer:
The answer is A
Explanation:
The downward sloping curve is a graphical representation depicting the relationship between a commodity's different price levels and quantities which consumers are willing to buy.
Answer:
True (Dead-weight loss )
Explanation:
When the market is not allowed to adjust towards the equilibrium the economics efficiency is lost. When the supply is excessive compared to demand some part of supply remains intact, which means that small of amount of supply does not contribute to economics and allocation efficiency and considered as a dead-weight loss. The supply is forgone because the market is not allowed to stabilise.
Answer:
$119,666
Explanation:
The benefit of remodelling can be calculated using the net present value.
The net present value is the present value of after tax cash flows minus the cost of an investment.
The net present value can be calculated using a financial calculator.
Cash flow for year 0 = $-2.8 million
Cash flow each year from year one to year five = $820,000
I = 12.5%
NPV = $119,666
The benefit of the renovation exceeds its cost so the renovation should be carried out.
I hope my answer helps you.
