Ask question

Ask question

All categories

3 years ago

10

A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost

per pound, the ending-year cost per pound, and the blend proportions follow. (Round your answers to the nearest integer.) Cost per Pound ($) Ingredient Beginning Ending Quantity (pounds) per 100 Pounds of Product A 2.50 2.95 25 B 8.75 9.90 10 C 0.99 0.90 60 (a) Compute the price relatives for the three ingredients. Item Price Relative A B C

1 answer:

klasskru [66]3 years ago

4 0

Answer:

The item price relative of ingredients A, B and C is 118, 113 and 91

Explanation:

Given

-----------------Cost per Pound ($)

Ingredient ---- Beginning ------ Ending Quantity (pounds) per 100 Pounds of Product

A ---------------- 2.50 ------ 2.95 ------ 25

B ---------------- 8.75 ------ 9.90 ------- 10

C ----------------- 0.99 ----- 0.90 ----- 60

Required

Calculate the price relatives for all ingredients

The price relatives for each ingredient is calculated using the following formula.

Price Relative = (P' * Q)/P°

Where

P' = Ending Cost per pound

P° = Beginning Cost per pound

Q = Quantity

The quantity is uniform for all products because it's measured per 100 pounds of each product.

So, Q = 100

Calculating Price Relative of A

P' of Ingredient A = 2.95

P° of Ingredient A = 2.50

By Substituting the right values in the given formula

P = (2.95 * 100)/2.50

P = 295/2.50

P = 118

Calculating Price Relative of B

P' of Ingredient B = 9.90

P° of Ingredient B = 8.75

By Substituting the right values in the given formula

P = (9.90 * 100)/8.75

P = 990/8.75

P = 113.1429

P = 113 ( Approximated)

Calculating Price Relative of C

P' of Ingredient C = 0.9

P° of Ingredient C = 0.99

By Substituting the right values in the given formula

P = (0.9 * 100)/0.99

P = 90/0.99

P = 90.90909

P = 91 (Approximated).

Hence, the item price relative of ingredients A, B and C is 118, 113 and 91

You might be interested in

Given the following historical demand, what is the weighted moving average forecast (0.4, 0.3, 0.3) for Week 6?

Roman55 [17]

Answer:

The correct option is B. 9200.

Explanation:

This can simply be answered as follows:

$F_{6} =(D_{5}*W_{5})+(D_{4}*W_{4})+(D_{3}*W_{3})$ .................. (1)

Where:

$F_{6}$ = Weighted moving average forecast (0.4, 0.3, 0.3) for Week 6 = ?

$D_{5}$ = Week 5 demand = 11,000

$D_{4}$ = Week 4 demand = 9,000

$D_{3}$ = Week 3 demand = 7,000

The (0.4, 0.3, 0.3) implies that:

$W_{5}$ = Weight of Week 5 demand = 0.4

$W_{4}$ = Weight of Week 4 demand = 0.3

$W_{3}$ = Weight of Week 3 demand = 0.3

Substituting all the relevant values into equation (1), we have:

$F_{6}$ = (11,000 * 0.40) + (9,000 * 0.30) + (7,000 * 0.30) = 9,200

Therefore, the correct option is B. 9200.

7 0

3 years ago

A manufacturer of cellular phones has decided that an assembly line is operating satisfactorily if less than 6% of the phones m

Jobisdone [24]

Answer:

The sample of interest is the 30 phones that were sampled and tested from a day's production

3 0

3 years ago

What is a way to protect your social security number and other sensitive information from identity theft

yuradex [85]

<span>Change online account passwords frequently and your SS just lock in a safe so no one can access the number but you</span>

7 0

3 years ago

Read 2 more answers

If the minimum attractive rate of return is 7%, which alternative should be chosen assuming identical replacement (like kind exc

ira [324]

Answer:

The alternative that should be chosen assuming identical replacement is:

Alternative B.

Explanation:

a) Data and Calculations:

Alternatives:

A B

First Cost $5,000 $9,200

Uniform Annual Benefit $1,750 $1,850

Useful life, in years 4 8

Rate of return 7% 7%

Annuity factor 3.387 5.971

Present value of annuity $5,927.25 $11,046.35

Net cash flow $927.25 $1,846.35

b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.

7 0

2 years ago

Consider the old maxim, "build a better mousetrap and the world will beat a path to your door." discuss the meaning of this phra

MAVERICK [17]

In the context of time-based competition, "build a better mousetrap and the world will beat a path to your door." could be interpreted as "those who make better innovations would obtain the most opportunities to obtain profit in the market"

Innovations only offers advantages in the competition because it offer different options for consumers that exclusively belong to US. But innovation is NOT THE ONLY factors for the product's success. There are other factors that can influence the success such as marketing strategies, condition of the economy

6 0

3 years ago