Answer: Inventory will fluctuate significantly during the year
Explanation:
If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, then the inventory will fluctuate significantly during the year.
When using a level production strategy, it should be noted that there will be an increase in the inventory during when there are low demand while there'll be a reduction in the inventory during the periods of high demand.
Answer: 2) It involves pricing products that can be added to the base product.
Explanation:
Optional-product planning is a method of pricing where the producer lure buyers in by selling at a cheap price which can sometimes even fall below their cost price. These products however can not be fully utilized alone or as they are. They require accessories.
This is where the company hopes to make up the profit. They charge low on the main product, then hope to make up the cost when you buy the accessories. An example would be Printers and ink.
This is a risky method of selling and so needs the accessories to be priced in such a way that the company makes no losses.
Answer:
Sarah
Milkshakes
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared with other people.
A person has an absolute advantage in the production of a good or service If she produces more quantity of a product when compared with other people.
Sarah produces more hamburgers and milkshakes when compared to Abe. Therefore she has absolute advantage in the production of both milkshakes and hamburgers.
The opportunity cost of Sarah in producing hamburgers and milkshakes are both 10/10 = 1
The opportunity cost of Abe producing hamburgers is 4 / 5 = 0.8 and for milkshakes it is 5/4 = 1.25.
Therefore, Sarah has a comparative advantage in the production of milkshakes because she has a lower opportunity cost (1) when compared with Abe (1.25)
I hope my answer helps you.
Answer:
ROI 15%
Residual Income $1,350,000
Explanation:
Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The formula to calculate the residual income is,
RI = Net operating Income - (Required rate of return * Cost of operating assets)
RI = $4,500,000 - (21% * $15,000,000 )
RI = $1,350,000
ROI = 
Capital Employed = Sales - Average operating assets
ROI = 15%
Residual income is positive when the department has meet the minimum return requirement. Minimum return is the return that is required by the company stakeholders. The particular projects and activities are selected on the basis of residual income.
Answer:
1. Calculate the monthly payment for a 30-year mortgage loan.
we can do this by using the present value of an annuity formula
the loan's interest rate is missing, so I looked for a similar question and found that it is 6%
present value = monthly payment x annuity factor
monthly payment = present value / annuity factor
- present value = $200,000 (loan's principal)
- PV annuity factor, 0.5%, 360 periods = 166.79161
monthly payment = $200,000 / 166.79161 = $1,199.101082 ≈ <u>$1,199.10</u>
2. Calculate the amount of interest that you’d pay for a 30-year mortgage loan.
total interests paid during the 30 years = (monthly payment x 360) - principal = ($1,199.10 x 360) - $200,000 = <u>$231,676</u>
