Answer:
PV= $30,111.98
Explanation:
Giving the following information:
Future value= $60,000
Number of periods= 8
Interest rate= 9%
<u>To calculate the initial investment, we need to use the following formula:</u>
FV= PV*(1+i)^n
<u>Isolating PV:</u>
PV= FV/(1+i)^n
PV= 60,000 / 1.09^8
PV= 30,111.98
Answer:
The demand for Post Raisin Brand cereal is: ELASTIC
the demand for all types of breakfast cereals is: INELASTIC
Explanation:
To calculate the price elasticity of demand (PED) we can use the following formula:
PED = % change in quantity / % change in price
- If PED > 1, the demand is price elastic
- If PED = 1, the demand is price unitary
- If PED < 1, the demand is price inelastic
*The PED always results in a negative number, e.g. price deceases, quantity increases, but for practical reasons we convert the negative number into a positive (we use absolute values) when we are determining the elasticity.
In the process of straight rebuys, the buyer has this tendency to be the only member of the buying centre that is involved in the operation. In addition to that, the method is also used to describe the when a consumer would have to buy again the same product without referring to the information attached to it.
Answer:
Based on the EMV value, the best choice is to use Two suppliers
Explanation:
Is necessary to consider different amount of suppliers and evaluate the cost. We will choose the number of suppliers which offers a lower cost.
- EMV1 = cost of shutdown*super event risk + cost of shutdown*unique event risk + cost of managing supplier = 480000*.02 + 480000*0.05+16000 = 9600 + 24000 + 16000 = $ 49600
- EMV2 = cost of shutdown*super event risk + cost of shutdown*unique event risk of each supplier*unique event risk of each supplier + cost of managing 2 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 1200 + 16000*2 = $ 42800
- EMV3 = cost of shutdown*super event risk + cost of managing 3 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 16000*3 = $ 57600
Based on the EMV value, the best choice is to use Two suppliers
For economies of scope to occur it must be true that THE COST OF PRODUCING THE TWO GOODS TOGETHER IS LESS THAN THE COST OF PRODUCING THE GOODS SEPARATELY.
The economy of scope is the proportionate savings that is gained by producing two or more different goods together, when the cost of doing so is less than that of producing each separately.
