Answer:
Quantity discounts can be taken advantage of for large lot sizes.
Explanation:
The EOQ model assumptions:
the order of one item does not intervene with the other.
The order will arrive without delay and with a specific amount of goods.
no losses or damage in transit
The EOQ does not consider the discount for large lot size, their formula does not consider the value of the goods:
Its use: Demand of the good
cost of Setup, or ordering cost.
and Holding cost, the cost of keeping the inventory
There is no variable to account for discounts for order size in this method
Answer:
.b. The new project should be rejected because, if it is accepted, the firm's ROE will decline from 30% because the new ROE will be a weighted average of the old 30% and the 20% returns on the new investment
Explanation:
ROE means return on equity
ROE = Net income / shareholders equity
A project should be undertaken if the ROE of the project is greater than the cost of equity
Answer:
This is based on the micro-economics concept,
MRP=MRC
The principle states that in order to maximize profit a firm should employ the quantity of a resource at which its marginal revenue product (MRP) is equal to its marginal resource cost (MRC)
MRC is the wage rate in pure competition and in this case.
As each worker will bring in at least as much revenue as their wages cost. If the wage was $25, you would hire 4 workers. The MRC is 25 and MRP is 30, thus if a 5th worker would be hired, the amount paid would exceed the MRC, or what is coming in, thus you cannot increase to a fifth worker.
<span>In order to assess who is correct the exact nature of the tire needs to be seen in more detail. If the tire has been damaged by driving, a crash or some other method, than Technician B would be correct because the tire would need to repaired. However, if tires is moving funny as a result of a bump or some other impact to it, then it could be that the weights have become mis-aligned and then Technician A would be correct in that re-balancing solves the problem.</span>
