"... there is excess supply of bonds... interest rate will fall."
When the interest rate is above equilibrium, Qd (Quantity demanded) will be less than Qs (Quantity supplied) of bonds, since people are less willing to purchase when price is too high, and producers are more willing to sell their bonds when price is higher (since they earn more per unit sold). This results in surplus of bonds in the market, where Qs > Qd, which leads to a downward pressure being applied on price (in this case, the interest rate) so that Qs eventually equals to Qd.
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Answer:
458,000
Explanation:
Beginning inventory = 1,200 units
Budgeted sales = 456,000 units
Desired ending inventory = 3,200 units
Now,
Production Required is given as:
= ( Budgeted Sales + Ending Inventory Required ) - Beginning Inventory
on substituting the respective values, we get
Production Required = 456,000 + 3,200 - 1,200
or
Production Required = 458000
Answer:
Inventory turnover
Explanation:
Inventory turnover is the ratio which states how many times the company has sold as well as replaced the inventory during the stated period. The company could divide the days in the year through the formula of inventory turnover in order to compute the days it need to sell the inventory.
So, in the case, if she compute the inventory turnover ratio for the store and then compare with other stores. And higher inventory turnover ratio states the greater amount of efficiency in the business operations. The objective is to maximize the use of the cash and minimize the inventories.
Answer:
A.) Project A only
Explanation:
Given that
For project A
Pay back = 2.9 years
Net present value = $4,200
For project B
Pay back = 3.1 years
Net present value = $26,400
Based on the above information and payback decision rule, The project A should be accepted as it it contain less period compared to the project B i.e 2.9 years to 3.1 years
Hence, the correct option is a.
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