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
Anyone wanna be friends?? and maybe go on a skype call with me and my friend? =)
IRISSAK [1]

Yes lol i'll be your friend-

7 0
2 years ago
Read 2 more answers
Is Donald Trump a great president or Joe Biden?
Len [333]
Both of the president are not good president to be honest
6 0
3 years ago
Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Buildin
frozen [14]

Answer:

He will not pay any depreciation during October.

Explanation:

Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.

Depreciation for Building A would be zero  for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.

The depreciation expense will be computed on 1st of November.

7 0
3 years ago
A deli is offering a special for its sandwiches. a customer will receive three free sandwiches for every five sandwiches purchas
ArbitrLikvidat [17]
We see that for every 8 sandwiches that the customer needs, he will pay for 5. Lets see how many groups of 8 sandwiches the order of 675 sandwiches contains. If we do Euclidean Division we see that there are 84 groups of 8 and that three sandwiches are the remainder. 675/8=84.375; Hence we have 84 groups and 0.375*8=3 sandwiches that remain. Thus, the customer would play for 84*5= 420 sandwiches if he had ordered 84 groups of 8 (namely 672 sandwiches). Since he needs another 3 sandwiches and there is no promotional offer for those, he will have to pay in total for 423 sandwiches. It is important to not divide the total number by 8 and then multiply it by 5; the customer gets the free sandwiches only if he completes an offer of 5 sandwiches, thus we have to group the sandwiches in octads and deal with the remainder separately.
4 0
2 years ago
What might labor unions bargain for
Rus_ich [418]
Almost always, labor unions bargain and negotiate for "all of the above" since they were formed during the Industrial Revolution when worker conditions were very dangerous. 
3 0
2 years ago
Other questions:
  • Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has
    11·1 answer
  • Ajob search should be treated like a full time job.<br><br> True <br> False
    7·2 answers
  • Which of the following choices is not an example of a transferable skill
    6·1 answer
  • Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after
    10·1 answer
  • The field of _______ is considered a subfield of behavioral medicine and focuses on the various mental factors that are importan
    11·1 answer
  • A random sample of 81 automobiles traveling on a section of an interstate showed an average speed of 60 mph. The distribution of
    7·1 answer
  • If the recent financial crisis raises awareness about the dangers of not saving, leading to an increase in overall savings rates
    14·2 answers
  • If the Fed increases ​ior enough, such that it will raise the intersection point with the vertical portion of reserve​supply, th
    15·1 answer
  • What is it like to be a criminal in a mixed economy
    8·1 answer
  • Which pricing tactic should most likely be used when marketing organization are targeted quality-conscious consumers?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!