<u>SOLUTION AND EXPLANANTION:</u>
Let us define :Protection period” = P = Reorder period + Lead time = 7 + 3 days = 10 days
Z value for service level of 99% as per Z table= 2.33
Demand during protection period = = D = 80
Standard deviation of demand during Protection period = Sd = 10
Safety stock during protection period =
<u>Therefore,
</u>
Gross quantity to be ordered = Demand during protection period + Safety stock during protection period = 80 +73.67 = 153.67
However, number of items already in hand = 30 units
<u>Hence,
</u>
Net quantity to be ordered = Gross quantity to be ordered – Number of items already in hand = 153.67 – 30 = 123.67 ( 124 rounded to nearest whole number)
Answer:
7.6%
Explanation:
The formula for calculating the Required return is:
Required return = Dividend yield + Capital Gain Yield
Hence,
13% = Dividend Yield + 5.40%
Dividend Yield = 7.60%.
Hope this helps.
Goodluck.
Answer:
7.1%
Explanation:
Money multiplier measures the total increase in money multiplier
Money multiplier =1 / reserve requirement
1 / 14% = 7,1%
Answer:
-$850
Explanation:
The computation of the net income or loss using the cash method is shown below:
= Received cash from customers - accrued salary expense - paid electricity bill
= $1,870 - $2,590 - $130
= -$850
As we can see that the total of expenses is more than the revenue generated so it would be the net loss and the same is to be shown in a negative sign
Hence, the net loss is of -$850
Answer:
real GDP
Explanation:
The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.
According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.