Maybe a product didn’t work out, a bad review from a customer or client, health inspections didn’t pass etc..
Answer:
The opportunity cost of buying 3 CDs is the lost opportunity to buy 1 DVD
Explanation:
Opportunity cost is the cost of alternative forgone.It is cost of the item not purchased due the current buying decision.
It is also applicable to a business division selling to another division within the company.The cost of such internal sale is viewed as the variable cost of the product plus the contribution forgone from not selling to external party.This is most likely the case when the selling division does not have a spare capacity with which it can fulfill internal sale request.
Answer:
time between orders 25 working days
yearly ordering cost: $150
Explanation:
The annual demand is 4,000 units if order size is 400 units there will be 10 orders per year
Given a year of 50 weeks: every 5 weeks an order will be placed.
As each week has 5 working days that would mean every 25 working days
Then, total order cost:
each order cost $15 to place as there are 10 order per year it will be $150 ordering cost.
<span>Cluster Development. It is the economic development of business clusters. The cluster concept has rapidly attracted attention from governments, consultants, and academics since it was first proposed in 1990 by Michael Porter.</span>
