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3 years ago

If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is 5 days, the ROP will be:______

Business

1 answer:

sweet-ann [11.9K]3 years ago

7 0

Answer:

d. 130

Explanation:

Using the given date to calculate Reorder Point:

Reorder Point = (Average demand*Lead time) + Safety stock

Reorder Point = (20*4) + 50

Reorder Point = 80 + 50

Reorder Point = 130

Thus, the ROP is <u>130</u>.

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Atlas Corporation sells 100 bicycles during a month. The contribution margin per bicycle is $200. The monthly fixed expenses are

jonny [76]

Answer:

A, $12,000

Explanation:

Profit is the financial gain as a result of the difference between the selling price of a product and the cost/production cost of the product.

To calculate the profit from the sale of the bicycles, we use the formula

Profit = (marginal cost x quantity of bicycles) - Expenses.

we have,

Profit = ($200 x 100) - $8,000

Profit = $20,000 - $8,000

Profit = $12,000.

Cheers.

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3 years ago

Unless an exemption applies, under the Investment Advisers Act of 1940, an investment adviser is required to A) furnish a statem

Anarel [89]

Answer:

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3 years ago

Olive Corporation has two divisions, Pressing and Extracting. The company's primary product is Lavender Oil. Each division's cos

Alex777 [14]

Answer:

$15,000

Explanation:

Operating income is the difference between the net sales or revenue generated by a business and the operating expenses of the business.

The operating expenses of the business may be classified into 2 groups namely the fixed and variable costs.

The total operating cost of the business

= ( $9 + $6 + $28 + $32) per barrel

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3 years ago

Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. Record this transaction in the

OLga [1]

Answer:

Explanation:

The accounting equation is shown below:

Total assets = Total liabilities + Shareholder's equity

In the given transaction, the office equipment was purchased for $3,000 and it is paid immediately which means the balance of office equipment is increased and the cash balance is decreased.

It gives a positive impact on office equipment under fixed assets and a negative impact on the cash balance under the current assets.

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4 years ago

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti

katen-ka-za [31]

Answer:

total revenue for 500 is $2500

total revenue for 400 is $2800

Explanation:

given data

price of good A = $50

quantity demanded of good A = 500 units

price of good A rises = $70

quantity demanded of good A falls = 400 units

solution

we get here Elasticity of demand that is express as

Elasticity of demand = (change in quantity ÷ average quantity) ÷ (change in price ÷ average price) .......................1

here

Change in quantity is = 400 - 500 = -100

and average quantity is = $\frac{400+500}{2}$ = 450

and change in price is = 70 - 50 = 20

average price is = $\frac{70+50}{2}$ = 60

so now we put all value in equation 1

Elasticity of demand = $\frac{\frac{-100}{450} }{\frac{20}{60} }$

Elasticity of demand = -0.67

as here the elasticity of demand is inelastic because elasticity is above -1

so about total revenue when price will increases as elasticity is inelastic

so increase in price will cause increase in revenue because revenue is maximum when elasticity = -1

and increase in price will cause increases elasticity in the absolute term and revenue will increase

total revenue = price × quantity

total revenue for 500 = 500 × 5 = $2500

total revenue for 400 = 400 × 7 = $2800

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3 years ago