Answer:
The optimal quantity of safety stock which minimizes expected total cost is _ units is <u>100 units</u>.
Explanation:
Incremental Costs would be considered here to evaluate which safety stock level is the best for the company.
The working is as under:
<u>Safety Stock</u> <u>Carrying Cost</u> <u>Stock-out Cost</u> <u>Total Cost</u>
0 0 (100*0.2 + 200*0.2) * 80 4,800
100 100*30 = $3000 (100 * 0.2) * 80 1,600
200 200*30 = $6000 (200 * 0.2) * 80 3,200
The total cost has started growing as the safety starts growing above the 100 units level. This means that the safety stock must be 100 units as the cost at this level is the lowest to the company.
Answer:
lower prices for domestic production
Explanation:
tariffs means
more tax on imports so
imports would be more expensive
A. increased quantities of imports?
if imports are more expensive because of tariffs and
if people buy less
then there would NOT be
increased quantities of imports
because they are more expensive
B. higher prices for the import-competing goods both domestically and abroad?
import-competing (domestic) goods would be cheaper
C. lower prices for domestic production?
yes domestic production would be cheaper
D. less expensive exports?
only if other countries don't put tariffs on them themselves
Answer: D. I, II, and III
Explanation:
If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.
You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.
Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.
Answer:
c.Unlike nonprofit organizations, for-profit organizations focus on gaining competitive advantage in the marketplace.
Explanation:
The nonprofit organization is that organizations whose aim to focus on the welfare of the society as a charity, donation, etc. It can provide services in educational, research, etc,
Whereas, Profit organization is those organization whose focuses to maximizing their profit and minimizing their cost so that it would gain a competitive advantage in the marketplace. Its focuses is to target as the general public.
Hence, option c is correct