Answer:
b. volume variance.
Explanation:
Volume variance can be defined as the difference between the static budget and the flexible budget.
It mainly occurs as a result of the difference between the actual volume and the budgeted volume derived from the static budget.
Answer:
The amount I can afford to spend each year is $133,241.15
Explanation:
The amount I can afford to spend each year can be determined using the formula for present value of annuity due which is given below:
PV(Annuity due)=A*(1-(1+r)^-N)/r
PV is the present value of the investment which is $1.5 million
A is the annual spending which is unknown
r is the rate of return on the investment at 8% per year
N is the duration of investment which is 30 years
The formula can be rewritten as
A=PV/(1-(1+r)^-N)/r
(1-(1+r)^-N)/r=1-(1+8%)^-30/8%
=1-(1+0.08)^-30/0.08
=(1-0.099377333
)/0.08
=11.25778334
11.25778334 is known as annuity factor
A=$1500000/11.25778334
A=$133,241.15
Answer:
-0.136 and $528
Explanation:
Given that
p = 50 - 0.5Q
where,
Q = 88
So, p equals to
= 50 - 0.5 × 88
= 50 - 44
= $6
As it is mentioned that
p = 50 - 0.5Q
0.5Q = 50 - p
Q = 100 - 2p
And we know that
Price elasticity of demand is
= Percentage Change in quantity demanded ÷ Percentage Change in price
So,
= -2 × (6 ÷ 88)
= -0.136
And, the revenue is
= Price × Quantity
= $6 × 88
= $528
Answer:
10.8%
Explanation:
Given that,
Investment in Stock A = $2,000
Investment in Stock B = $3,000
Expected return on Stock A = 9%
Expected return on Stock B = 12%
Expected return on the portfolio:
= [(Investment in Stock A × Expected return) + (Investment in Stock B × Expected return)] ÷ Total investment in Stock A and B
= [($2,000 × 9%) + ($3,000 × 12%)] ÷ ($2,000 + $3,000)
= ($180 + $360) ÷ $5,000
= $540 ÷ $5,000
= 0.108 or 10.8%
Answer:
when sea transportation is used:
safety stock = Z-score x √lead time x standard deviation of demand
- Z-score for 99% = 2.58
- lead time = 36 days
- standard deviation of demand = 4,000 units
safety stock = 2.58 x √36 x 4,000 units = 61,920 units
reorder point = lead time demand + safety stock
- lead time demand = 36 days x 5,000 units = 180,000 units
- safety stock = 61,920
reorder point = 180,000 units + 61,920 units = 241,920 units
when air transportation is used:
safety stock = Z-score x √lead time x standard deviation of demand
- Z-score for 99% = 2.58
- lead time = 4 days
- standard deviation of demand = 4,000 units
safety stock = 2.58 x √4 x 4,000 units = 20,640 units
reorder point = lead time demand + safety stock
- lead time demand = 4 days x 5,000 units = 20,000 units
- safety stock = 20,640
reorder point = 20,000 units + 20,640 units = 40,640 units
