Answer:
The average inventory which HG should carry during the year is 5,000 units.
Explanation:
Economic Order Quantity is the ideal inventory procurement which minimizes holding and ordering cost. The EOQ is used by businesses in order to determine the best possible inventory holding.
EOQ = ![\sqrt{\frac{2*Annual Demand * Ordering Cost}{Annual Holding Cost} }](https://tex.z-dn.net/?f=%5Csqrt%7B%5Cfrac%7B2%2AAnnual%20Demand%20%2A%20Ordering%20Cost%7D%7BAnnual%20Holding%20Cost%7D%20%7D)
EOQ = ![\sqrt\frac{2*7,500*5,000}{10*0.3}](https://tex.z-dn.net/?f=%5Csqrt%5Cfrac%7B2%2A7%2C500%2A5%2C000%7D%7B10%2A0.3%7D)
EOQ = 5,000 units
Answer:
Explanation:
Forward excahnge rate/spot exchange rate = (1+rh)/(1+rf)
rh - periodic interest rate in the home currency
rf - periodic interest rate in the foreign currency
Forward/90 = [1+1%*180/360]/[1+2%*180/360]
Forward = 1.005/1.01 * 90 = 89.55
Forward rate is 89.55 yen/$
Answer:
2) Set the price of each piece of furniture equal to the marginal cost of producing it.
Explanation:
What happens in two-part tariff is that the producer recovers the entire cost of producing by charging price equal to the marginal cost.
This helps him recover cost and the entire fee the producer charges results in profits eventually. Hence, the profits is the consumer 'surplus' that we calculate given that the price of product is equal to marginal cost.
So answer here is 2- Set the price of each piece of furniture equal to the marginal cost of producing it.
"If you send in the minimum payment, you will be charged a late fee."
This is an INCORRECT statement, because you will not be charged a late fee just for making the minimum payment. Minimum payments are not a good idea because you will be charged interest on the remaining amount and will have a harder time paying off the balance, but you will not be charged a late fee.