Answer:
b. decrease
Explanation:
In the EOQ model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to <u>decrease</u>.
Carrying cost is placed in denominator of the EOQ formula hence as we increase denominator the total quantity will fall. If the carrying cost is high, then we would place lesser order to reduce such costs.
Also, if carrying costs decrease while all other costs remain unchanged, the number of orders placed would be expected to decrease because there is already excess of inventory due to which the new orders have to be decreased to utilize the already pending inventory.
Answer:
c. international trade
Explanation:
Options A and E are wrong because franchising and licensing businesses need to pay a special commission or extra expense to do the business. In that case, if the first company faces any disreputed problem due to the food, it is challenging for other franchisees to operate. Licensing business needs a massive cost at the start of the market.
Options B and D are wrong because acquisitions of existing operations or establishing a new subsidiary require high investment.
<em>Option C</em> is correct because international trade can take place at any time. There is a little cost when the trading period starts. Otherwise, there are not many costs. So, it is a less risky method.
Answer:
PV $61,399.0165
Explanation:
First, we solve for the present value of the annuity:
3rd year > Annuity Start 25th year end
<-----/----/----/----/----/----/----/----/----/......----/----/----/----/----/---->
^ Present day
C 6,800.00
time 22 years (25 - 3)
rate 0.07
PV $75,216.4354
Now, as this is 3 years from now so we make an additional discount from this lump sum:
Maturity $75,216.4354
time 3.00
rate 0.07000
PV 61,399.0165
that would be the value of the annuity today.
Answer:
The amount of Drake’s casualty loss deduction is $3,000
Explanation:
The deduction amount would be less of the adjusted basis or net cost of the truck
where,
Adjusted basis = $22,000
And, the net cost would be equal to
= Repair cost - reimbursement cost of insurance
= $5,000 - $2,000
= $3,000
So, by comparing both the amounts, the $3000 would show a lesser amount than adjusted basis ($22,000)
And, the purchase cost of the truck would be ignored. Thus, it is not considered in the computation part.
Answer:
$75
Explanation:
We know,
Manufacturing overhead rate = Budgeted manufacturing overhead ÷ Budgeted direct labor hours
Given,
Budgeted manufacturing overhead = $4,500,000
Budgeted direct labor hours = 60,000
Putting the values into the manufacturing rate formula, we can get,
Manufacturing overhead rate = $4,500,000 ÷ 60,000 hours
Manufacturing overhead rate = $75 per labor hour.
When the standard amount of factory cost is allocated to the production of every unit, it is called the overhead manufacturing rate.
