1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svlad2 [7]
2 years ago
9

Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and

a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is its maximum profit?
a. $10,500
b. $8,500
c. $7,500
d. $6,000
Business
1 answer:
Minchanka [31]2 years ago
3 0

Answer:

c. $7,500

Explanation:

Profit Maximization is a process in which an entity determines the selling price and cost of the product that results in the highest profit.

Use following formula to calculate the maximum profit

Maximum profit = Mean demand x ( Price per unit - Cost per unit )

Where

Mean demand = 500

Price per unit = $25

Cost per unit = $10

Placing values in the formula

Maximum Profit = 500 x ( $25 - $10 )

Maximum Profit = $7,500

You might be interested in
For 2018​, Pompi marketing managers project monthly sales of 460 comma 000 ​12-ounce bottles and 200 comma 000 ​1-gallon contain
Eduardwww [97]

Answer:

Budgeted total revenue = $424,000

Explanation:

<em>The revenue budget shows the expected amount sales income projected for the next coming accounting period for a business. It contains data about the expected ales volume for different products, their prices and the estimated sales revenue.</em>

Product         Price             Quantity              Revenue

Ounce             0.40             460,000               184,000

Bottles             1.20             200,000                <u>240,000 </u>

Total revenue                                                     <u>424,000 </u>

Budgeted total revenue = $424,000

           

6 0
3 years ago
Water and air are examples of _____ resources while people are considered to be _____ resources
kiruha [24]

Answer:

the answer is natural;human

7 0
2 years ago
Croft Company sold land costing $10,000 for $12,000. In the investing activities section of the statement of cash flows, the com
Nezavi [6.7K]

Answer:

The answer is: B) An inflow of $12,000

Explanation:

Croft Company's cash flow should include the total cash inflow (the company received money) of $12,000. Even if the company bought the land the day before, paying the $10,000 yesterday, the cash flows are independent one from another. It should have recorded the outflow of $10,000 "yesterday".

7 0
3 years ago
A company uses the weighted average method for inventory costing. At the start of a period the production department had 28,000
yaroslaw [1]

Answer: $4.38

Explanation:

Conversion costs are based on completed units so those units that are yet to be completed will be converted into equivalent units.

Units produced = Units completed and transferred out + equivalent WIP

= 169,000 + (26,000 * 79%)

= 169,000 + 20,540

= 189,540 units

Total Conversion costs = beginning conversion costs + conversion costs added during period

= 103,000 + 726,925

= $829,925‬

Conversion cost per equivalent share

= 829,925‬/189,540

= 4.3786

= $4.38

6 0
3 years ago
THE WINNER IS cssa06160! She/he answerd the most questions with all accuracy : )!!! She will get brainliest
o-na [289]

Answer:

^--^

Explanation:

3 0
3 years ago
Other questions:
  • Jordan plans to open a computer repair business this summer. As he plans, he writes down the long-term goals of the business so
    12·1 answer
  • Last week you and a friend went to an electronics store. you purchased a television for $600 and your friend bought a video game
    12·1 answer
  • What does it mean when a part of the population is​ under-represented?
    14·1 answer
  • Seven essential elements of an effective Compliance Program include:
    9·1 answer
  • Kiosks and carts are ideal locations for
    13·2 answers
  • 10. Barbara Inc. is working on its cash budget for June. The budgeted beginning cash balance is $16,000. Budgeted cash receipts
    13·1 answer
  • What is management and leadership​
    15·2 answers
  • Fill in the blank. Today most large corporations not only accept the necessity of affirmative action but also find that ________
    9·1 answer
  • When Paul listened to the presidential candidate debates, he heard one candidate proposing to increase taxes and the other candi
    10·1 answer
  • _____ is the supply chain function responsible for acquiring raw materials, component parts, tools, services, and other items re
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!