Define private equity funds economics.

Scenario 5 Guemmer Specialty Foods can produce their famous cherry pies at a rate of 1650 cases per day (this is the daily produ

Arturiano [62]

Answer:

c) Annual set up cost= $9878.04

Explanation:

Economic batch quantity (EBQ) is also known as economic production run, It is the optimum production run that a manufacturer should operate to minimize set up cost and carrying cost.

Carrying cost is the cost of keeping inventory while set up cost is cost of getting machines ready for production

Annual inventory cost = = Set up cost per run× Annul demand / EBQ

Annual demand / the economic production run(EBQ)

It is calculated as follows:

Economic batch quantity =√2× Co× D / Ch(1-D/P)

Where ,

D - annual demand - 62,500

Ch -holding cost per unit per annum - $11.50

Co- set up cost - $320

Production rate = 1650 units per day × 250 days =412,500 units

Economic batch quantity

= √(2× 320× 62,500) / (11.50× (1- 62500/412500) )

=2024.69 units

Annual set up cost

= Set up cost per run × Annul demand / EBQ

= $320× 62,500/2024.69

Annual set up cost= $9878.04

6 0

2 years ago

A card from a 52 card deck is lost. We then draw 2 cards from the 51 remaining cards. What is the probability they are both diam

Nonamiya [84]

Answer:

$\frac{1}{17}$

Explanation:

Let D be the event that the lost card is a diamond

and D' be the event that the lost card is a non diamond

Therefore,

P(D) = $\frac{13}{52}$ = 0.25

P(D') = $\frac{39}{52}$ = 0.75

Now,

Event that the cards picked up are both diamonds = A

Thus,

P( A | D) = $\frac{12}{51 }\times\frac{11}{50}$ [ As One Diamond Card is lost ]

And,

P(A | D') = $\frac{13}{51}\times\frac{12}{50}$ [ As One Non-Diamond card is lost ]

Therefore,

P(A) = P(D) × P(A | D) + P(D') × P( A | D')

= 0.25 × $\frac{12}{51 }\times\frac{11}{50}$ + 0.75 × $\frac{13}{51}\times\frac{12}{50}$

= $\frac{1}{17}$

3 0

2 years ago

Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are

Alisiya [41]

Answer:

The answer is $47,000

Explanation:

Accounting profit profit doesn't consider opportunity cost. So the value for opportunity cost will be left out. It is Economic profit that considers opportunity cost.

Accounting profit = revenue - cost(explicit cost which is all cost involved in directly running the business e.g cost of sales, electricity cost, wage etc.)

Revenue = $64,000

Explicit cost = $17,000

Therefore, Accounting profit is

$64,000 - $17,000

=$47,000

8 0

2 years ago

The net cash flows of Advantage Leasing for the next 3 years are $42,000, $49,000 and $64,000 respectively, after which the grow

liberstina [14]

Answer:

$863,689.50

Explanation:

The computation of the present value of the terminal value is shown below:

The terminal value at the end of the third year is

= Third year Cash flows × (1 + growth rate) ÷ (required rate of return - growth rate)

= $64,000 × (1 + 2%) ÷ (8% - 2%)

= $1,088,000

Now its present value is

= terminal value at the end of the third year ÷ (1 + rate of interest)^number of years

= $1,088,000 ÷ (1 + 8%)^3

= $863,689.50

This is the answer but the same is not provided in the given options

3 0

2 years ago

Indicate the effect of each transaction during the month of October 20Y8 and the balances for the accounting equation after all

Leona [35]

Answer:

For better visualization, the answer is presented in a table

$\left[\begin{array}{ccccc}&Assets&=&Liabilities +&Equity\\1&45,000&=&&45,000\\2&-2,000&=&&-2,000\\Bal.&43,000&=&0&43,000\\3&5,000&=&&5,000\\Bal.&48,000&=&0&48,000\\4&&=&&\\Bal.&48,000&=&0&48,000\\5&20,000&=&20,000&\\Bal.&68,000&=&20,000&48,000\\6&-1,000&=&&-1,000\\Bal.&67,000&=&20,000&47,000\\7&8,000&=&&8,000\\Bal.&75,000&=&20,000&55,000\\8&-3,000&=&&-3,000\\Bal.&72,000&=&20,000&52,000\\9&-100&=&&-100\\Bal.&71,900&=&20,000&51,900\\\end{array}\right]$

Procedure details described below:

Explanation:

Opened a business bank account for Jones, Inc., with an initial deposit of $45,000 in exchange for common stock.

The cash is an asset for the company And Jones Is the Owner thus, asset and equity increase by 45,000

Paid rent on the office building for the month, $2,000.

The rent is an expense is an incurred cost to continue the operations of the business It decreases the equity and asset (cash used to pay the rent)

Received cash for fees earned of $5,000.

The fees are revenue from the business operations this is a realized gain, therefore, increases equity. Also, Assets increase as cash is an asset.

Purchased equipment, $7,000.

There is no change in the quantities but, the composition of the asset did change. Cash decrease while equipment increase.

Borrowed $20,000 by issuing a note payable.

The note payable is a future obligation to pay. It is a liability for the company assumed in exchange for an asset (cash)

Paid salaries for the month, $1,000.

Like rent, this is an incurred cost(expense) It decreases Equity also, assets as we use cash to pay it.

Received cash for fees earned of $8,000.

Exactly like the previous time, a realized gain generates an increase in equity and assets.

Paid dividends, $3,000.

The dividends are paid to the company's owners thus, the cash leaves the company into the owner's pocket. Both, assets and equity decrease (as there are fewer assets available for the owners to take)

Paid interest on the note, $100.

The interest also is an incurred cost thus, like salaries and rent expense we decrease equity and assets.

3 0

2 years ago

Define private equity funds economics. ​

Define private equity funds economics.