Hassock Corp. produces woven wall hangings. It takes 3 hours of direct labor to produce a single wall hanging. Hassock standard
1 answer:
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Answer:
A.
$0.05
B.
$18,600
C.
30,000 units
Explanation:
Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.
As per given data
Annual Demand = 90,000 batteries
Ordering cost = $250
Carrying cost = $0.046
A.
Annual Holding cost = Holding cost per unit x Annual Demand = $0.046 x 90,000 batteries = $4,140
Opportunity cost = $0.046 X 110% = $0.05
B.
Purchase cost = 90,000 x $0.14 = $12,600
Ordering cost = (90,000/15,000) x $250 = $1,500
Storage cost = $0.05 x 90,000 = $4,500
Total cost of Inventory = $12,600 + $1,500 + $4,500 = $18,600
C.
EOQ =
EOQ =
EOQ = 30,000
Answer:
Ans,
a) If interest rates suddenly rise by 3 percent, Bill´s bond would drop by -20.02% and Ted´s bond would go down by -36.07%
.
b) If rates were to suddenly fall by 3 percent, Bill´s bond would rise by 26.79%
and Ted´s bond would rise too by 86.47%
.
Explanation:
Hi, first let´s go ahead and establish the stable scenario, for that we are going to use the information of the problem but we need to add the discount rate of the bond or yield, which is the missing information. All this so this concept can be explained in a better way, so for this example we´ll say that the yield of both bonds is 10% compounded semi-annually, the same units as the coupon. Now we have to use the following formula.
Where:
Coupon = (%Coupon/2)*FaceValue= (0.104/2)*1,000=52
Yield = we are going to assume 10% annual, that is 5% semi-annual
n = Payment periods (For Bill n=5*2=10, for Ted, n=22*2=44)
So, let´s see what is the price of each bond if the yield was 10% annual compounded semi-annually.
In Ted´s case, that is:
Now, if the interest rate (Yield) suddenly goes up by 3%, this is what happens to Bill´s Bond
If yield goes down by 3%, this is the new price of Bill´s bond.
Price(Bill)=\frac{52((1+0.02)^{10}-1) }{0.02(1+0.02)^{10} } +\frac{1,000}{(1+0.02)^{10} } = 1,287.44
Now, in the case of Ted, this is what happens to the price if the yield goes up.
If it goes down by 3%, this would be the price for Ted´s bond.
Now, in percentage, what we need to use is the following formula.
For example, in the case of Bill´s bond, which yield went up by 3%, this is what we should do.
So, the price variation is -20.02% if the yield rises by 3%.
This are the results of the prices and calculations for you to answer this question. Best of luck.
Bill Ted % (Bill) %(Ted)
Base Price $1,015.44 $1,035.33
(+) 3% Yield $812.12 $661.84 -20.02% -36.07%
(-) 3% Yield $1,287.44 $1,930.56 26.79% 86.47%
Answer:
forced distribution
Explanation:
Based on the rest of the sentence it can be said that the missing term is forced distribution. This is a system that requires managers to evaluate each individual and rank them typically into one of three categories. These categories are excellent, good, and poor and allow managers to indicate if the employee should be terminated, is doing good, or is in-line for promotion as indicated in the graph below. This term is also known as the vitality curve or bell curve.
