Answer:
Option (A) is correct.
Explanation:
Given that,
Direct Materials = $386,100
Direct Labor = $200,100
Factory Overhead = $220,300 and,
Selling Expenses = $39,500
Conversion costs = Direct labor + factory overhead
= $200,100 + $220,300
= $420,400
Therefore, the conversion costs for the company is $420,400.
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles. These consumers would be exemplifying the economic idea that:_____.
A. people are rational.
B. people respond to economic incentives.
C. optimal decisions are made at the margin.
D. equity is more important than efficiency.
Answer:
B. people respond to economic incentives.
Explanation:
Economic incentive is material given by someone, that is capable of motivating the other person to behave or act in a certain way. If economic incentives come from a government, it can be in form of tax incentives, subsidies or any monetary gift in form of cash or near cash.
To the economist, human being being rational, will respond to economic incentives in various forms.
At the beginning of 2017, the octo company issued 10% bonds with a face value of $3,000,000. these bonds mature in the five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $2,779,200 to yield 12%. octo uses a calendar-year reporting period. using the effective-interest method of amortization, amount of interest expense that should be reported for 2017 is
Answer:
$334,509.12
Explanation:
When using Effective Interest Method,
Interest Expense = Carrying value of Bond × Market yield interest rate.
Semi annual Cash interest:
= $3,000,000 × 10% × 6/12
= $150,000
2017 Interest Expense:
Interest Expense for first semi annual payment:
= $2,779,200 × 12% × 6/12
= $166,752
[Hence, Discount amortized = $166,752 - $150,000 = $16,752]
Interest expense for second semi annual payment:
= ($2,779,200 + $16,752) × 12% × 6/12
= $167,757.12
Therefore, the amount of interest expense that should be reported for 2017:
= $166,752 + $167,757.12
= $334,509.12
Journal entries are written in a certain format in the general journal. When writing a journal entry, which of the following is/are true? (check all that apply)
Select one or more:
a. A reference, often a date, should be written along with the journal entry.
b. Amounts written in the debit and credit columns represent dollar amounts.
c. The account to be credited is listed below and indented to the right of the debited account.
d. The account to be debited is listed first starting with the debited account name followed by the amount being debited.
Answer:
a. A reference, often a date, should be written along with the journal entry.
b. Amounts written in the debit and credit columns represent dollar amounts.
c. The account to be credited is listed below and indented to the right of the debited account.
d. The account to be debited is listed first starting with the debited account name followed by the amount being debited.
Explanation:
An accounting journal serves as a books of original entries that is utilized as the initial recording book before being posted to the general ledger.
A typical accounting journal has a date by the side., it has a space for narration or description, the dollar amount are in the debit and credit column, The account to be credited is listed below and indented to the right of the debited account.
Final answer:
In the general journal, entries must include a reference or date, and amounts in the debit and credit columns represent dollar amounts. The account to be credited is indented below the account to be debited, which is listed first with the amount.
Explanation:
When writing a journal entry in the general journal, the following statements are true:
a. A reference, often a date, should be written along with the journal entry.b. Amounts written in the debit and credit columns represent dollar amounts.c. The account to be credited is listed below and indented to the right of the debited account.d. The account to be debited is listed first starting with the debited account name followed by the amount being debited.Each of these components helps to ensure that a journal entry is clear, precise, and follows the standard format for double-entry accounting. This system ensures that for every financial transaction, effects are recorded in at least two accounts, following the principle that every debit transaction must have a corresponding credit transaction. The structured format of journal entries is crucial for the accurate bookkeeping and preparation of financial statements.
Farmer Ted sells winter wheat in a perfectly competitive market. The market price for a bushel of winter wheat is $9. Ted has two hundred and seventy bushels of wheat to sell. If his total variable cost is $2,000 and his total fixed cost is $500, then Ted ________
Answer:
Farmer Ted will receive $9 x 270 = $2,430
This amount does not cover all of Ted's costs = $2,000 + $500 = $2,500, but it helps Ted to minimize his losses.
In a perfectly competitive market, a supplier cannot set the price, they are all price takers. But suppliers will keep selling their products as long as the price exceeds variable costs. in this case variable costs = $2,000, therefore $2,430 exceeds them.
Ted will not make a profit, but he will minimize his losses because the other option of not selling anything will result in a net loss of $500, while selling at the current price results in a net loss of $70.
Jim holds a commercial lease. Last year his rent went up 4% based on a 4% increase in the wholesale price index. What type of lease does Jim have?
A) Revolving lease.
B) Wholesale lease.
C) Index lease.
D) Leading Indicator lease.
The income statement:a. is a financial statement that shows the firm’s financial position at a particular point in time. b. details the firm’s assets and liabilities over a period of time. c. is a financial statement that summarizes a firm’s revenues and expenses over a period of time. d. is a financial statement that summarizes a firm’s revenues and expenses at a particular point in time.
An income statement is a financial statement summarizing a firm's revenues and expenses over a period of time. It is not meant to depict the firm's financial position at a particular point or account for its assets and liabilities, which is the role of a balance sheet.
Explanation:The Income Statement, also known commonly as the profit and loss statement, is a financial document summarizing a firm's revenues and expenses over a particular period of time. Its primary role is to depict how the revenues of a company are transformed into the net earnings (profit).
Therefore, the correct option is: c. is a financial statement that summarizes a firm’s revenues and expenses over a period of time. Assets and liabilities are summarized on the balance sheet, not the income statement, while the statement that shows financial position at a specific point in time is the balance sheet, not the income statement.
Learn more about Income Statement here:https://brainly.com/question/33036593
#SPJ6
An income statement is a financial document that summarizes a company's revenues and expenses over a period of time, unlike a balance sheet which shows a company's state at a specific point of time.
Explanation:An income statement, specified in option (c), is a financial statement that summarizes a firm's revenues and expenses over a particular period of time. This is not to be confused with a balance sheet which details a firm's assets and liabilities. A balance sheet reflects a company's state of affairs at a specific point in time, not over a period of time like the income statement. For a comparison, in the bank's balance sheet we're shown an example of this snapshot view of a firm's financial position, listing assets such as cash and liabilities like debt owed.
Learn more about Income Statement here:https://brainly.com/question/33690617
#SPJ6
Property A is a self storage facility with a going cap rate of 6.0%. Property B is an office building with a going cap rate of 6.0%. If both properties produce the same NOI, which property is worth more...?
Answer:
Worth of both the property will be same.
Explanation:
Data provided in the question:
Cap rate for the Property A which is a self storage capacity = 6%
Cap rate for the Property B which is an office building = 6%
NOI of both the buildings are equal
Now,
Mathematically,
Cap rate is given as = [ NOI ] ÷ [ Worth of the property ]
or
Worth of the property = [ NOI ] ÷ [ Cap rate ]
Since, the NOI and cap rate for both the buildings are same
Therefore,
Worth of both the property will be same.
Final answer:
The investment should be made if the 6% return is the best available use for the firm's cash, as it is preferable to earn a return on the cash rather than nothing and it avoids the cost of borrowing at a higher interest rate of 8%.
Explanation:
The question asks whether a firm should make an investment with a 6% rate of return when it has the cash available and would otherwise have to pay 8% interest on a loan. To determine if the firm should make the investment, we can compare the potential return on investment (ROI) to the cost of capital. In this case, the firm can earn a 6% return without incurring any debt, as it has the necessary funds on hand.
If the firm were to invest in an asset with a 6% return using its own funds, it would be foregoing the opportunity to invest that money elsewhere at potentially higher rates. However, assuming no better use of the funds is available, earning a 6% return is preferable to not investing and earning nothing. Moreover, since the cost of borrowing is higher at 8%, the firm is better off using its own funds.
Therefore, if the investment's rate of return at 6% is the best available use for its cash, the firm should proceed with the investment because it will generate a positive return without taking on the cost and risk of debt financing at a higher interest rate.
As a Christmas thank you for being a good employee, Ed's TV Repair gave 62-year-old Edwina three shares of its stock worth $20 per share. Edwina then received dividends of $1 per share related to the stock. How much should be included in Edwina's gross income?
Answer:
Edwina's gross income=$63
Explanation:
Shares from stock and dividends must always be included in the gross income since they form part of taxable income. In our case above, we can see that Ed's Tv Repair gave 62-year-old Edwina shares and dividend payments. Gifts are often included in the gross income.
Consider Edwina's gross income as shown;
GI=(S×s)+(D×d)
where;
GI=gross income
S=stock value per share
s=number of stock shares
D=dividend payments per share
d=number of dividend shares
This can also be written as;
Gross income=(stock value per share×number of stock shares)+(dividend payments per share×number of dividend shares)
In our case;
GI=unknown
S=$20
s=3
D=$1
d=3
replacing;
GI=(20×3)+(1×3)
GI=(60)+(3)=63
Edwina's gross income=$63
A car had been on end of year clearance at 30% off the original price. today, the dealer is having a special sale and you can take another 25% off the clearance price. how much total discount (off the original price) does one get on this car?
Answer:
47.5%
Explanation:
Data provided in the question:
Clearance discount percentage offered = 30%
Additional discount = 25%
Now,
Let the price of the car be $100
Therefore,
Price after the clearance discount = $100 - 30% of $100
= $100 - $30
= $70
Therefore,
Price after additional 25% discount = $70 - 25% of $70
= $70 - $17.5
= $52.5
Thus,
Total discount percentage
= [ ( Original cost - Selling cost ) ÷ Original cost] × 100%
= [ ( $100 - $52.5 ) ÷ $100 ] × 100%
= 47.5%
The total discount is not 55% (computed from simply adding 30% plus 25%) but rather 47.5%, because the second discount is applied to the already discounted price.
Explanation:The total discount on this car isn’t a simple addition of the two discounts of 30% and 25% because the second discount is applied to the reduced price, not the original one. Here’s the calculation: let the original price of the car be 100%. After the 30% clearance discount, the price becomes 70% (100% - 30%). Now another 25% discount is applied on this reduced price. So 25% of 70% is 17.5%. Then we subtract this discount from the reduced price - that gives us 52.5% (70% - 17.5%).
So in comparison to the original price, that’s a total discount of 47.5% (100% - 52.5%).
Learn more about Percentage Discounts here:https://brainly.com/question/32407541
#SPJ3
Which of the following is considered to be a "super tool" or tool that has high use and high potential for improving project success?A. net present value B. risk registers C. progress reports D. fast trackin
Answer:
C. progress reports
Explanation:
A progress report is a document which prepared and maintained so as to track the progress of the project in a course of time.
The progress report contains the outlines of the activities that has been carried out and how much the tasks has been completed.
It also records the milestones that has been achieved according to the project plan.
The project report can be prepared daily, weekly or in a specific interval of time according to the scale of the project.
The success of the project can be improved with the use of Progress report. It is a document that is prepared and maintained for tracking the progress of any of the project in the a specified course of time.
The progress report is the best tool that has high use and high potential for improving project success because it contains the outline of all the activities of the project that has been carried out.
It also shows the way the tasks has been completed.
It is strongest tool as it is prepared on daily, weekly or in a fixed interval of time as per the scale of the project.
To know more about progress report, refer to the link:
https://brainly.com/question/11260353
Jackson Corp. has beginning retained earnings of $400. During the year Jackson had $800 of revenues and $200 in expenses. Jackson paid a dividend of $100. What is retained earnings at year-end?
Answer:
The retained earnings for the end of the year is $900
Explanation:
Retained earning is calculated as
Beginning retained earnings + Net income - cash dividend
in the questions we were given the beginning retained earning(BRE) as $400 and Cash dividend as $100. However we were not given the actual Net income but we can derive the net income by deducting the expenses from the total revenue.
solution
Net income = revenue - expenses = $800 - $200= $600
Now we can calculate our Retained earnings by adding
Beginning retained earning $400
Net income $ 600
and deducting the cash dividend $100
$400 + $600 - $100 = $900
Due to an upwelling of public fear, cities across the country pass laws imposing taxes on and implementing inspections of any business that allows certain dog breeds, like Rottweilers and pit bulls, on its premises.
Check all that apply.
a. Political-legal
b. Competitors
c. General environment
d. Task environment
Answer: a.Political-legal b. General environment
Explanation:
Political-legal dimension of a company's legal environment include legal restrictions on a business as well as public uproar for that restriction.
Final answer:
The imposition of taxes and inspections for certain dog breeds in businesses classifies as a political-legal issue in the C. general environment, not the task environment or related to competitors.
Explanation:
When cities across the country pass laws imposing taxes on and implementing inspections of any business that allows certain dog breeds on its premises, these regulations fall under the political-legal aspect of the business environment. Specifically, this is an example of the general environment.
It encompasses regulatory changes that can affect numerous businesses and industries indirectly, as opposed to the task environment, which consists of stakeholders such as customers, competitors, and suppliers that a business interacts with directly. The additional economic burden and regulations do not pertain to competitors as an immediate environmental factor.
A firm releases a new technology only to have a competitor implement a similar technology with more features and value to the consumer. This would be which type of risk?
a) Demonstrating bad timing
b) Awakening a sleeping giant
c) Mobile-based alternative removes advantages
d) Running afoul of the law
e) Implementing IS poorly
Answer:
a) Demonstrating bad timing.
Explanation:
If the firm releases a new technology with the hope of getting a lot of sales, only to have a competitor implement a similar, but more advanced or complete technology shortly after, it is because the firm is not aware enough of the timing of technological advancements.
A firm without bad timing should not have been surpassed in the technology department by a competitor so fast.
This kind of problem has hapenned in real life. for example, when Blackberry launched the 8000 - 9000 series of phones in 2006, only to have Apple launch the much more innovative and groundbreaking Iphone in 2007.
"In the AD-AS framework, the simple Keynesian model includes an aggregate supply curve that is __________until the economy reaches its natural real GDP."
Answer:
horizontal
Explanation:
The AD-AS framework is based on the Keynes's The General Theory of Employment, Interest and Money and shows a simplified macroeconomic model.
Keynes believed that the economy was not self regulating like classical economists stated, since wages and prices tend to be inflexible (wages are extremely inflexible). Since wages and prices are a vital component of the economy, since they cannot adjust themselves as easily as the classical economic model believes, the economy will be inherently unstable.
Even when the economy is not growing or is in the middle of a recession, workers will not accept a decrease in their wage. To be honest, who would? Remember the CEOs, CFOs, COOs, etc. of GM and Chrysler that earned tens of millions while their companies went bankrupt? If they didn't take a cut on their pay, why should a normal average worker do?
Prices cannot be freely adjusted by the companies since competition exists. Imagine all the fast food restaurants decided to increase their prices by 20% because of high inflation, etc., but Burger King decides to keep their prices still. Burger King restaurants would have an excess of clients while the rest would see a significant decrease in their sales. The more competition, the more difficult it is to raise the price of your products.
The classical economic model is great in theory, specially in the long run, but in the real world it doesn't work that well.
Why might buying a home during a recession be a good decision for some consumers? Check all that apply. a. Housing prices are down. b. It is easier to get a mortgage. c. Less demand means more options for buyers. d. Less demand means less competition with other buyers. e. Fewer houses are on the market.
Answer:
a. Housing prices are down.
c. Less demand means more options for buyers.
d. Less demand means less competition with other buyers.
Explanation:
A recession is a decline in economic activities in a country, characterized by rise in unemployment, fall in income, and fall in aggregate demand.
During recession because of fall in purchasing power, and decline in aggregate demand, prices naturally will fall and housing prices will fall as well.
A recession is characterized by accumulation of inventory, availability of many unsold stock means more options for buyers.
Fall in demand as a result of lack of purchasing power during recession means less competition with other buyers.
Answer:
a. Housing prices are down.
c. Less demand means more options for buyers.
d. Less demand means less competition with other buyers.
Explanation:
During a recession in the economy, the aggregate demand is on a lower side. This makes the housing prices lower. Lower prices due to lower demand, imply more options for the buyers. Lower demand indicates less competition with other buyers for a buyer.
Hence, all (a), (c) & (d) are the main solutions to the problem, that's why it's easier to get a mortgage.
_________ is a concept that is unique to each organization and is the total sum of all tangible and intangible elements
Answer: Business value
Explanation:
The business value is the term which refers to the all the organizational values such as integrity, innovation, passion, determination and the respect.
The business value is basically measured on the basis of monitory term and also depends upon the actual requirement of an organization. It is the process of total sum of all the tangible and the non tangible elements in the system.The following are are the different forms of the business value is an organization are as follows:
Managerial valueSupplier valueSocietal value Customer value
A broker listed a $75,000 property and the agreement read that the owner would NOT take more than a 25% cash offer. The broker produced a buyer who offered a full price 100% cash offer. Would the broker be due a commission?
Answer:
The correct answer is - No,
Explanation:
The correct answer is - No,
The answer is no because the broker brings a buyer who is ready to give 1005 cash offer which is against the legal agreement defined by the owner. owner state that he is only taking a 25% cash offer.
Therefore the owner wouldn't consider the broker and didn't due broker commission.
Which type of economist views economic systems as subsystems of the biosphere that depend heavily on irreplaceable natural resources?
Answer:
An Ecological economist
Within the food industry, a growing trend is locavorism, which means consumers actively look for products that come from farms within _____ miles of where they live. A. 500 to 1000 B. 100 to 500 C. 50 to 100 D. Over 2000 E. 1000 to 2000
Locavorism refers to the trend of consumers seeking products from farms within a certain distance of where they live. The correct answer is C. 50 to 100 miles.
Explanation:Within the food industry, the growing trend of locavorism refers to consumers actively seeking products that come from farms within a certain distance of where they live.
In this case, the correct answer is C. 50 to 100 miles. This means that consumers are looking for products that are produced within a relatively close radius to their location.
For example, if someone lives in a city, they may prioritize purchasing fruits, vegetables, and other food products from local farmers or farmers' markets within a 50 to 100 mile range.
Learn more about Locavorism here:https://brainly.com/question/33797560
#SPJ6
Which of the following challenges is most likely to be faced by service operations managers, rather than manufacturing operations managers?A. Customers are more directly involved in service processes, so their perceptions need to be consideredIt is a way to categorize elements of work activities.B. The "total product experience" is more important in services.C. Pure service operations need to be separated from pure goods producing operations.D. Operations is typically less financially important in service businesses.
Customers are more directly involved in service processes, so their perceptions need to be considered , It is a way to categorise elements of work activities.
Option A is correct
Explanation:
Operations managers experience multiple problems on a daily basis.
I highlight five: Globalisation, conservation, ethical behaviour, Effective communication, and program architecture.
Globalisation: A system of engagement and convergence between individuals, businesses and governments through countries.
Conservation: Method to determine if a company can sustain existing methods without compromising future resources.
Ethical behaviour: To order to secure that neither the customer nor the environment is affected by the output process and/or practices.
Effective communication: The responsibility of the Operations Manager is to interact with all internal and external players effectively.
Program architecture: Output of appropriate quantities of quality products and services in an appropriate time frame.
A person has a comparative advantage in the production of a good when she or he can produce the product at a(n) ________ opportunity cost compared to another person.
Answer:
A person has a comparative advantage in the production of a good when she or he can produce the product at a lower opportunity cost compared to another person.
Explanation:
Comparative cost advantage is a concept that emphasizes on an individual, a firm or a county specializing in the production of goods in which it has a greater advantage over others. In other words, a country is expected to produce goods in which it can produce with less opportunity cost than its trade partner.
Bill Holdfast owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with the property. Bill takes an annual cost recovery expense of $5,000. The property has a monthly gross income of $1,500 and monthly operating expenses of $500. Bill's taxable income from this property will be taxed at a rate of 30%. What is the tax liability for the year?
Answer:
Tax Liability = $2,100
Explanation:
given data
annual cost recovery expense = $5,000
monthly gross income = $1,500
monthly operating expenses = $500
tax rate = 30%
solution
we get here tax liability for the year that is express as
Tax Liability = [(Rent for 1 year ) - Annual cost recovery expense - ( monthly operating expense in 1 year ) ] × tax rate ........................1
put here value and we will get
Tax Liability = [(1500 × 12 ) - 5000 - ( 500 × 12 ) ] × 30%
Tax Liability = $2,100
In industries where there is a high degree of competition among suppliers, reverse auctions can be an efficient way to conduct and manage the price bidding that would naturally occur in that market.True / False.
Answer:
True
Explanation:
A reverse auction is a modern way of selling in a highly competitive business environment, whereby there is a switch in role between the seller and buyer in a traditional auction. in this type of auction there are several seller competing to sell to few buyers. The sellers bid for buyers by offering increasingly low prices for buyers and sometimes underbid each other because of the stiff competition.
A builder must build fifty houses by the end of the year but he has run out of available land. Which best describes the builder's supply of houses?
Answer:
Inelastic supply
Explanation:
The builder's supply of houses is inelastic, because the supply of houses has less responsiveness on the availability of land.
Answer:
C I Believe.
Explanation:
Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really:________.
a) using his intuition.b) using bounded rationality.c) using perfect rationality.d) satisficing.
Answer:
A
Explanation:
By listening to his gut, Farrell is using his intuition (instinct).
One's instinct tells one what to do but there is usually no rationale behind the action taken
Answer:
A
Explanation:
I took the test
If you were appointed to conduct a social audit of portion pac what type of information would you collect what questions would you as explain it answer
Answer:
The things related to the people would all be covered in a Social Audit of Portion Pac.
Explanation:
A Social Audit involves examination of the companies with respect to their responsibility towards the people as a whole. Hence, a typical Social Audit involves addressing the following questions-
Is Portion Pac giving a true and fair view of its Accounts? (Might affect the shareholders in the future)Is Portion Pac doing enough Corporate Social Responsibility (CSR) activities like donation towards the blind and charity to associations working on blood donation etc. ? ( Can better the needy people associated with respective donations and charities etc.)Is Portion Pac giving fair wages to its employees? (Affects the employee stability)Is Portion Pac's operations have an adverse impact on the environment? ( Affects the Sustainable Development of the country)Is Portion Pac's working conditions favorable for work? (Again affects the employee stability)Is Portion Pac sensitive on issues like deforestation and women empowerment across the world etc. ? ( These kind of issues impact the society as a whole)In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. This is an example of___________.
Answer:
Lowering the prices for customers
Explanation:
Competitive market is the market where there are many producers are competing with each other in order to provide or offer the goods and services needed to the consumer or customers.
So, in this market, the furniture company plans to use the cheaper materials in order to decrease the production costs and also pass the savings. This would be an example of the lowering or decreasing the price for the customers, which in turn increase the sales of the business.
An advertising executive takes over a Google Search ads campaign. On his Google Ads Recommendations page he notes that the campaign's optimization score is 40%. What does this score indicate?
Answer:
These are the options for the question:
The campaign could be improved by 60% if the listed recommendations are followed. The campaign is 60% less optimal than other company campaigns. The campaign is running 40% over budget. The campaign is 40% optimized for the given keywords chosen by the previous campaign manager.And this is the correct answer:
The campaign could be improved by 60% if the listed recommendations are followed.
Explanation:
If the optimization score of the firm's Google Search Ads campaign is 40%, it simply means that it can be improved by 60% in order to reach the full potential of the programme.
It does not mean that the campaign is 60% less optimal than others because the score only measures the firm's own campaign.
And it does not have any direct connection with the campaign's budget or keywords.
Calculate the expected cost per stockout with the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. The sales price of the item is $12 with a 20% profit margin. The average order is 50.
Answer:
7208.9
Explanation:
Calculate the expected cost per stockout with the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. The sales price of the item is $12 with a 20% profit margin. The average order is 50.
expected cost is the probability that a certain cost will be incurred multiplied by the cost.
Stockout cost can be defined as the lost income and expense in relation to a shortage of inventory.
Expected cost/stockout=Probability of stockout *expected demand
Probability of a back order is 67%
lost sale is 22%
probability of a lost customer is 11%.
expected demand for back order $50
The average order is 50.
lost customer is $65,000
The sales price of the item is $12 with a 20% profit margin
.67*50+.11*65000+.22*50+1.2*12
33.5+7150+11+14.4
=7208.9
To calculate the expected cost per stockout, multiply the probability of each stockout type by its cost and sum them up. The cost for a lost sale is calculated using the sales price and the profit margin. Use these values to find the expected cost per stockout.
Explanation:To calculate the expected cost per stockout, we need to consider the probability of each type of stockout and the respective costs associated with them. Given the probabilities and costs for a back order, lost sale, and lost customer, we can compute the expected cost per stockout using the following formula:
Expected Cost per Stockout = (Probability of Back Order × Cost per Back Order) + (Probability of Lost Sale × Cost per Lost Sale) + (Probability of Lost Customer × Cost per Lost Customer)
However, the Cost per Lost Sale is not provided directly; we can calculate it using the sales price and profit margin. The cost for a lost sale is the profit lost, which is calculated as follows:
Cost per Lost Sale = Sales Price × Profit Margin
Substituting the values:
Cost per Lost Sale = $12 × 20% = $2.40
Now we can plug all the values into the formula:
Expected Cost per Stockout = (0.67 × $50) + (0.22 × $2.40) + (0.11 × $65,000)
Please note that you have provided a list of various cost points and price information, which seems unrelated to the calculation at hand. Only the relevant information has been used in this calculation.
Nguyen's Sporting Goods is having difficulty obtaining the credit it needs to expand. What should the company do in order to alleviate its financial situation?
Answer:
Work out a plan with its financial intermediaries.
Explanation:
As mentioned in the question that Nguyen's Sporting Goods is having difficulty obtaining the credit, it needs to expand. The company should work out a plan with its financial intermediaries, in order to alleviate its financial situation. Because as we all know that a financial intermediary is a financial institution as well. So the company has to create a plan with there financial institution.