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2 years ago

Question 10 of 36

Business

1 answer:

lana66690 [7]2 years ago

7 0

Answer:

Explanation:

To answer the question, we look at an extreme scenario of 0% interest rate and see the minimum repayment Jade will make on the loan taken

Therefore,

Interest Rate = 0%

This means that the loan to be paid will be calculated as follows

Monthly payments x 12 Months x 14 Years

= $195 x 12 months x 14 years = $32, 760

The meaning of this outcome is that the lower the interest rate to be paid, the higher the size of the loan, because at 2.9% the loan= $26,898.98 and at 0% rate the loan= $32, 760.

The conclusion therefore is a 2.7% interest rate which is lower than 2.9% but not as low as the extreme 0% will cause the loan amount to be higher than $26,898.98. This affirms option A.

Options B and C are wrong because 2.5% and 2.3% are lower than 2.9%, therefore, the loan amount will be higher. Option D is also wrong because a 3.1% interest rate is higher than 2.9%, therefore, the amount should be lower not higher than $26,898.98

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If Joanna is risk averse, then:__________.

Rina8888 [55]

Answer:

c. she dislikes bad things more than she likes comparable good things.

Explanation:

In business sense where this falls to place, a risk aversed person is someone who invests in stock, trades and other business with an aim to possibly minimize any form of losses in his or her tine in doing these businesses. S/he is likely or can comfortable do a business and be sure of little interest or returns rather than venturing or risking trying deals that outcomes or returns are totally uncertain to the investor. Therefore after evaluations of this kind, it is easily denoted that being a risk taker could possibly be the opposite of being risk averse.

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3 years ago

High Plains Inc. manufacturers furniture in North Dakota. High Plains receives its wood from a lumber yard in Calgary. The lead

ArbitrLikvidat [17]

Answer:

a. On average, the number of boards they have on order = 1,056 boards.

b. On average, the number of boards they have =560 boards.

c. Total holding cost per week = $140.

d. Holding cost incurred per board = $ 0.25.

Explanation:

In the question, the details given are:

Service level =96 %

Lead time =3 weeks

Weekly demand =150

Standard deviation=200

This is a case of variable demand and constant lead time

a. Reorder point =Demand during lead time +Safety stock

=Average weekly demand*lead time+z*sqrt(lead time)*standard deviation of weekly demand

=150*3+NORMSINV(0.99)*sqrt(3)*200

=450+1.7507*sqrt(3)*200

=450+606.46=1,056.46

=1,056 (nearest whole number).

On average, the number of boards they have on order = 1,056 boards.

b. For a normal distribution,

z=x-mean/std deviation

z-value for a 96% confidence level = 2.05

2.05=x-150/200

x = 150+2.05*200=560

On average, the number of boards they have =560 boards.

c.Total holding cost per week=Average inventory *holding cost per week=560/2 *0.5=280*0.5 =$140

d.Holding cost incurred per board =Total holding cost /Number of boards =140/560 = $ 0.25.

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3 years ago

The planning cycle is viewed as a linear process with a sequence of steps; however, it can also be considered cyclical so that a

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A linear process with a sequence

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2 years ago

Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit $590 Variable cost p

Fofino [41]

Answer:

The company will need to sale 3,883 units to maintain its current operating income of 400,000

Explanation:

We will calculate the point at which the company mantains his current income in units at the new scenario:

$\frac{Fixed\:Cost + target \: income}{Contribution \:Margin} = Break\: Even\: Point_{units}$

<u>Where:</u>

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

625 - 190 = 435 each units contributes this amount to afford the fixed cost and make a gain.

Current income: contribution x units sold - fixed cost

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