Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
One basis for economics are science of choice.
When the grocery store orders a large shipment of chocolate candy just before Valentine's Day, this type of inventory is typically called Anticipatory inventory.
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What is Anticipatory inventory?</h3>
- Anticipatory inventory is the stock that is continued to accord to the normal buyer interest. It is very like wellbeing stock however it contrasts as in this stock is generally kept occasionally when the interest for items can shift enormously.
- This inventory enables a company to adapt to changes in customer demand.
- It enables the company to constantly provide customer service.
- When demand fluctuates, it enables the company to grow its operations.
- This inventory type may resemble safety stock quite a bit. It varies from safety stock, though, in that it is kept on hand by the business to handle demand swings. This change reflects the anticipation of rising demand in the near future.
- If a scarcity or price increase is anticipated soon, businesses might store more inventory.
Hence, this kind of inventory is frequently referred to as anticipatory inventory, such as when the grocery store orders a huge supply of chocolate candies right before Valentine's Day.
To learn more about inventory refer to:
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Answer:
500 units
Explanation:
The computation of the sales units in volume to achieve the desired profit is shown below:
= (Fixed cost + target profit) ÷ (contribution margin per unit)
= ($3,000 + $500) ÷ ($5 × 60% + $10 × 40%)
= $3,500 ÷ 7
= 500 units
Hence, the sales units in volume to achieve the desired profit is 500 units
The above formula should be applied to determine the sales units
hence, the same would be considered
Answer:
According to the data provided the opportunity costs is detailed below:
Initial Balance $20,000
Monthly interst $200
Investment $500
________________________
The Opportunity cost is $500
Explanation:
The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has three options:
1. Spending the money
2. Save the money
3. Invest the money
Once the money is spent the opportunity costs is generated and it is measured by the interest rate lost for not keeping the money in the investment that will generate an interest rate of $500 monthly.