Answer:
B) greater than $30 but less than $40
Explanation:
the options are missing:
A) less than or equal to $30
B) greater than $30 but less than $40
C) greater than $40 but less than $50
D) greater than $50
we must first calculate safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)
- Z-score for 98% confidence level = 2.326
- standard deviation of demand = 30
- √lead time = √5 = 2.23607
- we are not given any standard deviation of lead time, so we can assume that it is 0
safety stock = (2.326 x √2.23607 x 30) + (2.326 x 0 x 300) = 156.03 ≈ 156 units
the annual holding cost of 156 units = 156 x $0.25 = $39
High <u>debt to owner's equity ratio. </u>
This is total liabilities divided by total assets and shows a company's financial leverage, also known as their ability to handle current and future financial obligations.
Answer:
Local spaces open for public to help them with social activities. Parks, gyms, store, mall and clubs are some of local spaces which are open to everyone for gaining relaxation in their leisure time.
Explanation:
People are busy in weekdays and they need some place for relaxation on weekend. There are many places which provide with recreational activities for people to relax and spend their weekends with their family.
Answer:
They should operate Mine 1 for 1 hour and Mine 2 for 3 hours to meet the contractual obligations and minimize cost.
Explanation:
The formulation of the linear programming is:
Objective function:
Restrictions:
- High-grade ore:
- Medium-grade ore:
- Low-grade ore:
- No negative hours:
We start graphing the restrictions in a M1-M2 plane.
In the figure attached, we have the feasible region, where all the restrictions are validated, and the four points of intersection of 2 restrictions.
In one of this four points lies the minimum cost.
Graphically, we can graph the cost function over this feasible region, with different cost levels. When the line cost intersects one of the four points with the lowest level of cost, this is the optimum combination.
(NOTE: it is best to start with a low guessing of the cost and going up until it reaches one point in the feasible region).
The solution is for the point (M1=1, M2=3), with a cost of C=$680.
The cost function graph is attached.
Answer: The correct answer is " a. $92,000.".
Explanation: The explicit costs are observable, that is, those that we can easily take into account and decrease our operating result (salaries paid to employees, material costs, taxes, etc.)
So her total explicit cost were: $12 000 + $65 000 + $15 000 = $92 000.