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Murrr4er [49]
3 years ago
12

Ruff, Inc. makes dog food out of chicken and grain. Chicken has 10 grams of protein and 5 grams of fat per ounce, and grain has

2 grams of protein and 2 grams of fat per ounce. A bag of dog food must contain at least 226 grams of protein and at least 166 grams of fat. If chicken costs 11¢ per ounce and grain costs 1¢ per ounce, how many ounces of each should Ruff use in each bag of dog food to minimize cost? HINT [See Example 4.] (If an answer does not exist, enter DNE.)
Business
1 answer:
il63 [147K]3 years ago
7 0

Answer: Ruff, Inc., should use 0 oz of chicken and 113 oz grain.

Explanation:

Given that,

Chicken:  

10 grams of protein

5 grams of fat per ounce

Grain:

2 grams of protein

2 grams of fat per ounce

Chicken costs = 11¢ per ounce

Grain costs = 1¢ per ounce

Let x be chicken and y be grain

Objective is to minimize 11x +y  

subject to

10x +2y ≥ 226

5x + 2y ≥ 166

Solving these two equations, we get,

point (1)- (12, 53) and two corner solution

(2)- (0,113)  

(3)- (33.2,0)

Price of 1) = 12 × 11 + 53 × 1 = 185

Price of 2) = 0 ×11 + 113 × 1 = 113

Price of 3) = 33.2 × 11 + 0 × 1 = 365.2

Therefore, Ruff, Inc., should use 0 oz of chicken and 113 oz grain.

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While on a hike with a tour group in the mountains, Derek gets mauled by a bear. No previous reports of bears in the area had be
wlad13 [49]

Answer: D. Derek assumed the risk of a bear attack by joining the tour group, so he cannot hold the tour company liable

Explanation:

Derek has to accept that by joining the tour group, he assumed some the risk of some elements of danger amongst them the bear attack.

Even though there had been no prior attack by bears in the mountain, a mountain hike still has some inherent danger in it and this includes bears. He cannot hold the tour company liable using this reason alone.

4 0
3 years ago
Calculate the risk-adjusted asset base for a bank with: a. Cash of $20 million, 0% b. Gen. Obligation municipal security of $100
Ulleksa [173]
This is what i found  Answer 1
Risk-Adjusted Asset Base
The calculation of the risk-adjusted asset base for a bank is as below-
Risk-adjusted asset = (Cash × 0%) + (municipal security × 20%) + (home mortgages × 50%) + (Commercial loans × 100%)
= (20 × 0%) + (100 × 20%) + (500 × 50%) + (300$ × 100%)
= 0 + 20 + 250 + 300
= $570 million
The outcome shows that the risk-adjusted or weighted asset based for the bank will be $570 million.
Tier1 and Tier 2 Capital:
If the bank has no off-balance sheet activity then minimum required level of Tier 1 and Tier 2 capital will be-
Tier 1 capital = Risk-weighted asset × 4%
= $570 × 4%
= $22.8 million
Tier 2 capital = Maximum of 1.25% of risk-weighted asset
= $570 × 1.25%
= $7.125 million
Total capital = $22.8 + $7.125 => $29.925 million
The outcomes indicate that the minimum required level of Tier1 and Tier 2 capital is $22.8 million and $7.125 million for the bank.
Bank Comply with Capital Requirements:
If the bank has Tier 1 capital of $25 million and Tier 2 capital of $15 million then it will comply with its capital requirements of $29.925 million. It is because in this situation, total capital of bank is $37 million that is higher than the above calculated capital of $29.925 million.
Impact of off-Balance Sheet Activities on Capital Requirements
The addition of off-balance sheet activities might increase the capital requirement of the bank. It is because an off-balance sheet items is a financial contract that can create credit loss for the company due to credit risk. So, in case of adding off-balance sheet activities, a bank will require more capital to cover credit loss. Along with this, it can also increase the minimum ratio of capital to risk-weighted assets from 8% and in that situation; the bank will need more capital (Carmichael & Graham, 2012).
Answer 2
Probability of Repayment and Risk Premium
A).
If the rate on a one-year treasury bill is 6% and in case of loan default, no payments are expected on financial securities then the probability of repayment and the risk premium on 1 year AA-rated loan yielding 9 percent will be-
Probability of Repayment:
The following formula can be useful to determine probability of repayment.
P = (1 + I) / (1 + k)
Where,
I = 6%
k = 9%
Then, ...you have $2.19 left :D
 
4 0
3 years ago
The general ledger shows a balance of $ 66 comma 200 in the Merchandise Inventory account at the end of the period. The physical
madam [21]

Answer:

The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200

Explanation:

Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately

The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account

Given

Physical Inventory Account= $63,000

Merchandise Inventory Account= $66200

Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account

Adjusting Entry = $66,200 - $63,000

Adjusting Entry = $3200

6 0
4 years ago
Suppose the government implements a negative income tax plan to deal with the poverty problem. The negative income tax rate is s
Andreas93 [3]

Answer:

At least $2,500. If the family's income was $0, then the government will transfer $2,500 to them.

Explanation:

A negative income tax refers to a welfare system where individuals earning below a certain amount, instead of being taxed, receive money transfers from the government.

4 0
4 years ago
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production cost
AfilCa [17]

Answer:

The correct answer is $95,400 lower than absorption costing.

Explanation:

According to the scenario, the given data are as follows:

Units manufactured = 33,100

Sold units = 27,800

So, Units in ending inventory can be calculated as follows:

Units in ending inventory = Units manufactured - Sold units

= 33,100 - 27,800 = 5,300 units

Now, Fixed manufacturing OH = $595,800

So, we can calculate the fixed manufacturing OH per unit by using following formula:

Fixed manufacturing OH per unit = $595,800 ÷ 33,100 = $18

So, Difference in net income for the year can be calculated as follows:

Net income difference = Fixed manufacturing OH per unit × Units in ending inventory

= $18 × 5,300 units = $95,400

Hence, The net income in variable costing is $95,400 which is lower than in absorption costing.

7 0
3 years ago
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