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2 years ago

Kane manages a used bookstore. He reads a report advising him to stock

Business

2 answers:

Fynjy0 [20]2 years ago

8 0

Answer:

The bookstore could lose money if customers buy less than expected.

Explanation:

sergeinik [125]2 years ago

4 0

Answer:

I would say that the answer is D. If he knows that people don't buy encyclopedia's, yet he stocks them, the store could lose money because no one would buy it.

Explanation:

Hope this helps. :D

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Paradise, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $625 2 875 3 1,150 4 1,250

MissTica

Answer:

(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?

To solve this problem, we must find the FV of each cash flow and add them.

To find the FV of a lump sum, we use:

FV = PV(1 + r)^t

[email protected]% = $625(1.11)^3 + $875(1.11)^2+ $1,150(1.11) + $1,250 = $4459

(b) What is the future value at a discount rate of 18 percent?

FV = PV(1 + r)^t

[email protected]% = $625(1.18)^3+ $875(1.18)^2+ $1,150(1.18) + $1,250 = $4852

(c) What is the future value at discount rate of 30 percent?

FV = PV(1 + r)^t

[email protected]% = $625(1.30)^3+ $875(1.30)^2+ $1,150(1.30) + $1,250 = $5597

5 0

3 years ago

Month Maintenance Machine Health Number of Shipping Units

8_murik_8 [283]

Answer:

1. Variable cost = Shipping costs

Fixed cost = Health Insurance

Mixed cost = Maintenance costs

Shipping costs are variable because a unit shipped costs $3.60. The total shipping cost for each month varies according to the units shipped in the month.

Health Insurance costs are fixed as there is no change in cost notwithstanding the number of employees in each month. The total health insurance cost remains the same every month.

Maintenance costs are mixed for each month, as there is a fixed element and a variable element.

2. Cost function for each cost:

Maintenance = $4,200 + $2.10 per machine hour

Health Insurance = $8,600

Shipping cost = $3.60 per unit

3. Cost function = $12,800 + $2.1m + $3.6s

where m = machine hours

and s = units shipped

4. The total operating cost for the month

= $46,040

Explanation:

a) Data and Calculations:

Month Maintenance Machine Health Number of Shipping Units

costs Hours Insurance Employees Costs Shipped

January 4500 165 8600 68 25778 7160

February 4452 120 8600 75 29664 8240

March 4600 230 8600 92 28674 7965

April 4850 318 8600 105 23058 8405

May 5166 460 8600 89 21294 5915

June 4760 280 8600 87 33282 9245

July 4910 340 8600 93 31428 8730

August 4960 360 8600 88 30924 8415

September 5070 420 8600 95 25110 6975

October 5250 495 8600 102 25866 7185

November 5271 510 8600 97 20124 5590

December 4760 275 8600 94 34596 9610

Cost Function for each cost:

Maintenance cost:

Machine Cost

Hours

November 510 5271

February 120 4452

Difference 390 819

Variable cost = $2.10 (819/390)

Fixed cost = $4,200 ($5,271 - ($2.10*510))

Health Insurance:

Fixed cost = $8,600

Shipping cost:

Variable cost = $3.60 per unit

Cost function = $4,200 + $2.10m + $8,600 + $3.60s

= $12,800 + $2.1m + $3.6s

February cost = $12,800 + $2.1(120) + $3.6(8240)

= $12,800 + $252 + $29,664

= $42,716

IF:

Machine hours = 400

Employees = 80

Shipped units = 9,000

The total operating cost for the month will be:

Cost function = $12,800 + $2.1m + $3.6s

= $12,800 + ($2.1 * 400) + ($3.6 * 9,000)

= $12,800 + $840 + $32,400

= $46,040

4 0

3 years ago

Once the decision has been made to implement an ERP system, the initial step is to select an ERP vendor.

stich3 [128]

It is true that once the decision has been made to implement an ERP system the initial step is to select an ERP vendor.

7 0

2 years ago

Bette and Jamal are partners at a management consulting firm.

kodGreya [7K]

Answer:

Jamal

Explanation:

Given that

Number of required slides = 50 slides

Creating slides Per hour = 15 slides

Bill amount per hour = $750

So by considering the above information, Bette's opportunity cost of creating slides would be

= Bill amount per hour ÷ creating slides per hour

= $750 ÷ 15 per hour

= $50

For making 50 slides, the opportunity cost would be

= $50 × 50 slides

= $2,500

And, Jamal opportunity cost is 30% lower, so it would be

= $50 - $50 × 30%

= $50 - $15

= $35

And, the billing rate is 25% higher, so it would be

= $750 + $750 × 25%

= $750 + $187.50

= $937.50

So in one hour, it would be

= $937.50 ÷ 35 slides

= 26 slides

Based on the creating slides, the Jamal gains a competitive advantage over Bette

4 0

3 years ago

First,label the following scenarios as to whether they would create a producer or consumer surplus. Then, after you have labeled

Iteru [2.4K]

Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off she found online. She selects and purchases a $35 pair of jeans, pre-discount.
(Alice's consumer surplus, $5)

Jeff finds some steaks for $16 for which he would have been willing to pay $20. The butcher notices the meat is near the expiration date and gives him an extra 75% off. 
(Jeff's consumer surplus, $16)

Nicole has in her possession a hockey puck from the 2010 Winter Olympic Games and sells it on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $500. 
(Nicole's producer surplus, $0)

Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer and is willing to sell for anything over $100. She is able to sell it for $125. 
(Claire's producer surplus, $25)

Roy is willing to pay $2.50 for a sports drink. He notices the price is $2.79 and chooses not to purchase a sports drink. (Roy's consumer surplus, $0)

8 0

3 years ago