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Andrew [12]
2 years ago
7

Jake Fleming sells graphic card update kits for computers. Jake purchases these kits for $20 and sells about 250 kits a year. Ea

ch time Jake places an order, it costs him $25 to cover shipping and paperwork. Jake figures that the cost of holding an update kit in inventory is about $3.50 per kit per year. What is the economic order quantity
Business
1 answer:
Allushta [10]2 years ago
7 0

Answer:

60 Kits

Explanation:

Cost price (C) = $20/Kit

Yearly se (D)  = 250 kit/year

Shipping cost / Ordering cost (Co) = $25

Holding cost (Ch) = $3.5/Kit-year

Economic order quantity = √2.D.Co / Ch

Economic order quantity = √2*250*25/3.5

Economic order quantity = √12500/3.5

Economic order quantity = √3571.4285

Economic order quantity = 59.7614305

Economic order quantity = 60 Kits

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At the time of Carol's 10 year high school reunion she was making $30,000 and the CPI was 90. Now that is is time for her to att
Klio2033 [76]

No, Carol's real income fell during that 10-year period.

[(30,000 ÷ 90 × 100) is > (65,000 ÷ 200 × 100)].

<h3><u>How Does the Consumer Price Index (CPI) Work?</u></h3>

The change in prices that American consumers pay each month is tracked by the Consumer Price Index (CPI). The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted average of prices for a selection of goods and services that are indicative of overall consumer spending in the United States.

A common indicator of inflation and deflation is the CPI. The CPI report employs a different survey methodology, price sample, and index weights than the producer price index (PPI), which gauges changes in the prices paid by American producers of products and services.

<u>What Purposes Does the CPI Serve?</u>

Policymakers and the financial markets carefully monitor the CPI Index as an indicator of inflation. The cost of living adjustments for federal benefit payments is computed using a linked CPI metric.

<u>How is the CPI determined?</u>

When calculating the CPI, the Bureau of Labor Statistics takes a monthly sample of 94,000 prices and weights each index according to its share of recent consumer spending to determine the total change in prices. In the computation, the substitution impact is also taken into account, which occurs when customers divert their spending away from goods whose prices are rising relative to other goods.

Learn more about CPI with the help of the given link:

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8 0
2 years ago
$1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If your nominal annual required rate of ret
Georgia [21]

Answer:

$1,115.58

Explanation:

Calculation to determine how much should you be willing to pay for this bond

Using this formula

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Where,

Par value= $1,000

Cupon= $35

Time= 10*4= 40 quarters

Rate= 0.12/4= 0.03

Let plug in the formula

Bond Price​= 35*{[1 - (1.03^-40)] / 0.03} + [1,000/(1.03^40)]

Bond Price​= 809.02 + 306.56

Bond Price​= $1,115.58

Therefore how much should you be willing to pay for this bond is $1,115.58

6 0
3 years ago
Which type of financial statement should you look at if you want to see a company's profits and losses over a specific period of
Nikolay [14]
The answer is D I hope I am right
3 0
3 years ago
Marcus is a manager of an automobile parts factory. he oversees the process of transforming the raw materials into automobile pa
Vinil7 [7]

Marcus is an operations manager, meaning he works to design and control production and operations involved in making and delivering a product.

4 0
3 years ago
To get the benefits of vertical integration without the accompanying risks, companies can ______. (Check all that apply.)
Ganezh [65]

Companies can do the listed in order to get the benefits of vertical integration without the accompanying risksL

  • choose strategic outsourcing
  • use taper integration

<h3>What is a vertical integration?</h3>

This refers to a business strategy that allows a firm company to alter or design its operations by taking direct ownership of various stages of its production process rather than just relying fully on an external contractors or suppliers.

The risk associated with a vertical integration that could be an inability to cope with new technologies because they evolve quickly can be correct by choosing a strategic outsourcing or using a taper integration.

Therefore. the Option A & B is correct.

Missing options "

-choose strategic outsourcing

-use taper integration

-control every element of the industry value chain

-opt to become fully vertically integrated"

Read more about vertical integration

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7 0
2 years ago
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