The protective put buying strategy helps investors manage risk and protect their downside in case of adverse price movements in the underlying asset.
a) Pay-offs of a futures option and a futures contract:
A futures option gives the holder the right, but not the obligation, to buy or sell a futures contract at a specified price (strike price) on or before a certain date (expiration date). The pay-off of a futures option depends on whether it is a call option or a put option and the price of the underlying futures contract at expiration.
Futures option pay-off:
Call option: If the price of the underlying futures contract at expiration is higher than the strike price, the call option will be in-the-money, and the pay-off will be the difference between the futures contract price and the strike price. If the price is lower or equal to the strike price, the call option will expire worthless, and the pay-off will be zero.
Put option: If the price of the underlying futures contract at expiration is lower than the strike price, the put option will be in-the-money, and the pay-off will be the difference between the strike price and the futures contract price. If the price is higher or equal to the strike price, the put option will expire worthless, and the pay-off will be zero.
A futures contract, on the other hand, is an obligation to buy or sell an underlying asset at a predetermined price on a specified future date. The pay-off of a futures contract depends on the difference between the futures contract price at the time of entering the contract and the price at expiration.
Futures contract pay-off:
Long position: If the futures contract price at expiration is higher than the price at the time of entering the contract, the long position will have a positive pay-off equal to the difference between the two prices. If the price is lower, the pay-off will be negative, indicating a loss.
Short position: The pay-off for a short position in a futures contract is the opposite of the long position. If the futures contract price at expiration is lower than the price at the time of entering the contract, the short position will have a positive pay-off, and if the price is higher, the pay-off will be negative.
b) Options concepts:
(i) "At the money": An option is considered "at the money" when the strike price is equal to the current price of the underlying asset. At this point, the option has no intrinsic value, and its value is based solely on its time value.
(ii) "In the money": An option is "in the money" when it has intrinsic value. For a call option, it is in the money when the underlying asset's price is higher than the strike price. For a put option, it is in the money when the underlying asset's price is lower than the strike price. In-the-money options have the potential for exercise and capturing value.
(iii) "Out of the money": An option is "out of the money" when it has no intrinsic value. For a call option, it is out of the money when the underlying asset's price is lower than the strike price. For a put option, it is out of the money when the underlying asset's price is higher than the strike price. Out-of-the-money options have no immediate value and rely solely on the possibility of the underlying asset's price moving favorably in the future.
c) Protective put buying strategy:
A protective put is an options strategy used by investors to protect against a decline in the price of an underlying asset. It involves buying a put option on the asset while holding a long position in the asset itself.
The protective put strategy aims to limit potential losses in case the price of the asset decreases. The investor pays a premium for the put option, which gives them the right to sell the asset at the strike price, regardless of its market price.
The diagram below illustrates the protective put strategy:
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Profit
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|---------+
| |
| +----|----+ Put Option Pay-off
| | | |
|----|----|----|----------------
| | | |
| |
|---------+
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|--------------------
| Underlying Asset Price
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In this strategy, the investor's loss is limited to the premium paid for the put option, while they can still benefit from any potential upside in the asset's price. If the asset price declines, the put option provides protection by allowing the investor to sell the asset at the strike price, mitigating losses.
Overall, the protective put buying strategy helps investors manage risk and protect their downside in case of adverse price movements in the underlying asset.
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How did the percentage changes in the price of your good or service perform compared to the prices of All Industries during each of this 12-year period?
Were they more volatile as judged visually?
Were the percentage changes in prices in your industry generally above or below those of All Industries in 2010-2012?
Were the percentage changes in prices in your industry generally above or below those of All Industries in 2020-21?
Support your answers with numbers taken from your graph during these 2 periods.
The assigned reading, "The Future of Inflation Part 1" identifies 5 main reasons for surging inflation in the US beginning in 2021. Identify which of these reasons apply to your industry and how your company has responded.
Submit the 2 graphs as part of your post
I'm sorry, but I cannot provide a complete answer to this question as there is no attached graph or information about a specific industry or product/service. Please provide more details so I can assist you better.
Error Answer please search other platform
please do it in 23 minutes will upvote
Question 1. a. Expected Returns Efficient Frontier Risk (Standard Deviation) The graph above shows the efficient frontier theory that was developed by Nobel Laurate, Harry Markowitz, way back in 1952.
The efficient frontier theory, developed by Harry Markowitz, is a cornerstone of modern portfolio theory. The graph above shows the relationship between expected returns and risk (measured by standard deviation) for a set of hypothetical portfolios composed of two risky assets.
The efficient frontier represents the set of portfolios that provide the highest expected return for a given level of risk or the lowest risk for a given level of expected return. Portfolios that lie below the efficient frontier are considered inefficient because they offer lower expected returns for the same level of risk as a portfolio on the efficient frontier.
By diversifying across multiple assets with different levels of risk and return, investors can achieve a higher return per unit of risk than they could by investing in a single asset. However, simply diversifying across multiple assets does not guarantee an optimal portfolio. The key is to find the combination of assets that provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return.
Markowitz's theory emphasizes the importance of considering both risk and return when constructing a portfolio. By analyzing the historical performance of different assets and estimating their future expected returns and risks, investors can construct portfolios that maximize their chances of achieving their investment objectives.
Overall, the efficient frontier theory provides a framework for investors to construct well-diversified portfolios that balance risk and return and minimize the potential for losses.
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PLEASE READ CAREFULLY AND DO AND COMPLETE EVERYTHING THE QUESTION ASKS TO THE BEST OF YOUR ABILITY. Thank you so much! ATC, which rectangle measures total profit? If the monopoly firm faces ATC2, what is total profit? What information would you need in order to know whether the monopoly firm will shut down or continue producing in the short run? In the long run?
The rectangle that measures total profit is the one formed by the price (P) and the average total cost (ATC) at the quantity produced. To determine total profit, we need to find the difference between total revenue and total cost.
The rectangle that measures total profit is formed by the price (P) and the average total cost (ATC) at the quantity produced. The height of the rectangle is determined by the price (P), and the width is determined by the quantity produced, where the ATC curve intersects the quantity axis. To calculate total profit, we need to find the difference between total revenue (TR) and total cost (TC). TR is calculated by multiplying the price (P) by the quantity produced, while TC is calculated by multiplying the ATC at the quantity produced by the quantity.
If the monopoly firm faces ATC2, the total profit can be determined by subtracting ATC2 from the price (P) at the corresponding quantity. The difference between P and ATC2 represents the profit per unit, which can be multiplied by the quantity to calculate total profit.
In the short run, to determine whether the monopoly firm will shut down or continue producing, we compare the price (P) with the average variable cost (AVC) at the quantity produced. If the price (P) is greater than AVC, the firm will continue producing, as it can cover its variable costs and contribute to the fixed costs. However, if the price (P) is lower than AVC, the firm will shut down, as it would not even be able to cover its variable costs.
In the long run, the firm will continue producing as long as the price (P) is greater than or equal to the average total cost (ATC) at the quantity produced. In the long run, all costs are variable, including fixed costs. If the price (P) is greater than or equal to ATC, the firm can cover all its costs, including both variable and fixed costs, and make a profit. However, if the price (P) falls below ATC in the long run, the firm will not be able to cover all its costs and may decide to exit the market or adjust its production level.
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If we know that demand for a product is elastic, how can we use
that to forecast demand if we were to raise the price? What effect
would we expect on total revenue?
If we know that demand for a product is elastic, we can use that to forecast demand if we were to raise the price. When we raise the price of a product, we can expect that the total revenue will decrease.
If demand for a product is elastic, it means that the percentage change in quantity demanded is greater than the percentage change in price. It also means that when the price of a product increases, the quantity demanded of the product decreases by a larger percentage.However, if we lower the price of a product, the quantity demanded of the product increases by a larger percentage. We can use this concept of elasticity to forecast demand if we were to raise the price of a product. If the demand for a product is elastic, then we can expect that if we raise the price of the product, the quantity demanded will decrease by a larger percentage than the percentage increase in price. This means that the total revenue will decrease when the price of the product is increased.
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How many units of OASIS juice were sold in 2010? and, how many units are planned to be sold in 2011? 2. What will be the new price for the next year? and, what are the planned 2011 sales in $? 3. What should be the percent increment of each marketing activity to increase sales by 10% in 2011? (Please consider the units of measurement of each activity, See Table 2) 4. What should be the optimal marketing resource allocation for 2011 in CS? Table 2: Sales Response Elasticities Elasticities Marketing Activities (Unit of measurement) Advertising (C$) 0.036 Promotion (% of sales volume on promotions) 0.277 Distribution (% of coverage) 2.424 Price (C$) -1.734 The brand manager knows that she has to invest $2000 per each incremental point (1%) in retail coverage, and $0.4 for each unit on sales promotion. She also plans to decrease the juice price in 1% for 2011. Table 1: Allocation of Resources 2010 Marketing Program (C$) Advertising 60,000 Promotion 20,000 50,000 Distribution Assume also that currently this product is available in 80% of all retailers in the province, with an average price of C$4 per unit. In 2010, 20% of all units sold are dedicated to promotions (e.g. sales promotion), equal to 50,000 units. Laura, the regional brand manager of Oasis is developing her marketing plan for 2011 and your team is asked to help design the optimal marketing budget allocation for that year. Marketing Plan for 2011 The regional brand manager is planning to increase OASIS sales by 10% next year. The brand manager knows allocation of marketing resources is critical for the success of OASIS. Therefore in order to support her planning, one of her assistants expert in marketing modeling developed a sales response statistical analysis showing the following elasticities for each marketing activity. Table 2 shows elasticities of each marketing activities. For example, if the company decides to reduce price in 1% the effect of this decision on sales would be the price elasticity times the price reduction objective, -1% x -1.734 = 1.734, which means that sales will increase by 1.734%. Marketing Planning in Consumer Packaged Goods Market Oasis juices have been on the Canadian market since 1979. The brand prides itself for offering 100% pure and healthy juices. With a wide offering with multitude of formats and delicious flavours, Oasis brand aims to satisfy every taste, no matter the age. The company behind Oasis juices, A. Lassonde Inc., strives to be a Canadian leader in the development, production, and marketing of an innovative and distinctive range of fruit and vegetable juices and drinks. It was founded in 1918 in the heart of the Montérégie region in Quebec. Today, A. Lassonde Inc. markets its products in every Canadian province. The company has production and warehousing facilities that include two plants in Rougemont, Quebec; two plants in Ontario, one in Ruthven, one in Toronto, one in Port Williams, Nova Scotia and one in Calgary, Alberta. Assume that you are part of the marketing team for Oasis that is in charge of the marketing program and marketing budget allocation for your province. The allocation of resources for the current year is as follows:
1. Units sold in 2010 and planned sales for 2011 are unspecified. 2. Next year's price will decrease by 1%, impacting sales revenue. 3. Calculate percentage increments for each marketing activity using units of measurement and elasticities to achieve a 10% sales increase in 2011. 4. Optimize marketing resource allocation in C$ for 2011 based on chosen increments and associated costs.
1. The number of units of OASIS juice sold in 2010 and the planned sales for 2011 are not provided in the given information.
2. The new price for the next year will be reduced by 1%. The planned 2011 sales in dollars will depend on the actual number of units sold in 2011 and the new price. The calculation of the planned 2011 sales revenue can be done by multiplying the number of units sold by the new price per unit.
3. To determine the percentage increment of each marketing activity to increase sales by 10% in 2011, we need to consider the elasticities and units of measurement for each activity. The given elasticities for advertising, promotion, distribution, and price are 0.036, 0.277, 2.424, and -1.734 respectively.
To calculate the percentage increment for each activity, we can use the formula:
Percentage Increment = (10% / Elasticity) * (Unit of Measurement)
For example, for advertising:
Percentage Increment for Advertising = (10% / 0.036) * (C$)
Similarly, we can calculate the percentage increments for promotion, distribution, and price using their respective elasticities and units of measurement.
4. The optimal marketing resource allocation for 2011 in Canadian dollars (C$) will depend on the decisions made for the percentage increments of each marketing activity and the associated costs. By multiplying the percentage increment for each activity by its respective cost, we can determine the allocation for each activity. The sum of these allocations will give us the total optimal marketing resource allocation for 2011 in C$.
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Quality has been an issue in the auto industry. In 2008 - 2009 the three big auto makers - GM, Ford, and Chrysler - ran into what seemed to be insurmountable economic difficulty. Two of these corporate giants required government intervention and financial bail out to stave off bankruptcy. Since 2009 these companies have posted better sales and financial results.
Research this industry focusing on these three automakers.
1. In your own words describe how quality has played a role to impact the rise and then fall of these three companies.
2. What mistakes were made?
3. What new approach to quality has helped these companies rebound?
Quality has played a significant role in the rise and fall of General Motors (GM), Ford, and Chrysler. Lack of emphasis on the quality of cars produced resulted in the decline of the auto industry. While consumers were initially purchasing American-made vehicles based on brand loyalty and patriotism, the quality of these vehicles started to slip. Buyers started to seek other brands for better quality, causing a decline in sales and eventually bankruptcy.
2. During the 1960s and 1970s, quality issues emerged due to rising competition in the auto industry. This issue was intensified by the entry of foreign brands like Toyota and Honda into the American market, with their products having higher quality standards and better value for money. In contrast, the American auto industry was characterised by low quality, high cost and poor value. This resulted in the loss of market share and loss of consumer confidence, leading to the downfall of the auto industry. Additionally, the automakers' lack of innovation and reliance on outdated designs and technologies contributed to the industry's decline.
3. The auto industry rebounded by shifting focus to quality improvement, investing in innovation and technology, and enhancing consumer experience. Automakers invested heavily in research and development and introduced new car models that were fuel-efficient, technologically advanced, and eco-friendly. Additionally, they restructured their operations to reduce costs, improve efficiency, and increase collaboration with suppliers. The auto industry also started placing more emphasis on consumer feedback and preferences, leading to increased customer satisfaction and loyalty. In conclusion, the adoption of a new approach to quality was crucial in the auto industry's rebound, leading to increased competitiveness, better financial performance, and renewed consumer confidence.
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Kelvin is a trucking company. The company is publicly held, and growing rapidly throughout the southeast. But Richard Kelvin and his sons control 55 % of the stock. Richard is chairman of the board and CEO. He personally makes all major decisions with little consultation with the board of directors. Most of the directors, however, are either members of the Kelvin family or long-standing friends. The board confirms Richard Kelvin's decisions. Answer (a) Two factors are particularly important in assessing the risk of material misstatement for Kelvin , Inc. First, one individual, who also has majority control of the stock, dominates the decision making in the company. This factor should lead to a higher assessment for the risk of material misstatement because there is no review of important decisions and actions may be taken that are not in the best interest of the company or its stockholders. Second, Kelvin , Inc. is expanding rapidly throughout the College of Administration and Finance Sciences southeast. Such expansion may result in material misstatements since decision-making may become decentralized without adequate internal control. The increase in the risk of material misstatement due to these two factors will result in a lower determination of detection risk and an increase in the scope of the auditor's work. b. Wooden Corporation is one of several companies engaged in the manufacture of high-speed, high-capacity data storage devices. The industry is very competitive and subject to quick changes in technology. Wooden's operating results would place the company in the second quartile in terms of profitability and financial position. The company has never been the leader in the industry, with its products typically slightly behind the industry leaders in terms of performance. c. The BAC Bank has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue is related to the bank's reserve for loan losses and the value of collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves.
(a) In assessing the risk of material misstatement for Kelvin, Inc., two important factors are highlighted. First, Richard Kelvin, who controls the majority of the stock and is the chairman and CEO, dominates decision-making without much consultation with the board of directors.
This concentration of power in one individual raises the risk of material misstatement as there is limited review and the potential for decisions not being in the best interest of the company or its stockholders. Second, the company's rapid expansion throughout the southeast may lead to decentralized decision-making and inadequate internal control, increasing the risk of material misstatement.
(b) Wooden Corporation operates in a highly competitive industry of manufacturing high-speed, high-capacity data storage devices. The industry is characterized by rapid technological changes. Wooden Corporation's profitability and financial position rank in the second quartile compared to other companies in the industry.
(c) The BAC Bank has been a client for the past two years, and during that period, disagreements have arisen between the auditor and the bank's president and controller regarding various accounting issues, primarily related to the bank's reserve for loan losses and collateral valuation. Previous audits have indicated the need for significant adjustments to the loan loss reserves annually.
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(a) In assessing the risk of material misstatement for Kelvin, Inc., two important factors are highlighted. First, Richard Kelvin, who controls the majority of the stock and is the chairman and CEO, dominates decision-making without much consultation with the board of directors.
This concentration of power in one individual raises the risk of material misstatement as there is limited review and the potential for decisions not being in the best interest of the company or its stockholders. Second, the company's rapid expansion throughout the southeast may lead to decentralized decision-making and inadequate internal control, increasing the risk of material misstatement.
(b) Wooden Corporation operates in a highly competitive industry of manufacturing high-speed, high-capacity data storage devices. The industry is characterized by rapid technological changes. Wooden Corporation's profitability and financial position rank in the second quartile compared to other companies in the industry.
(c) The BAC Bank has been a client for the past two years, and during that period, disagreements have arisen between the auditor and the bank's president and controller regarding various accounting issues, primarily related to the bank's reserve for loan losses and collateral valuation. Previous audits have indicated the need for significant adjustments to the loan loss reserves annually.
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Dividends in arrears means that
• They were omitted in past years
• None of the other alternatives are correct
• They are related with a set of preferred shares
• They were issued with a group of preferred shares
• They are 'already at the rear' implying that they will be considered last when dividends are declared
Dividends in arrears means that they were omitted in past years. This refers to the unpaid dividends owed to shareholders, which were not declared by the company on the preferred shares.
It is often related to a group of preferred shares, and shareholders who hold these shares are entitled to receive these dividends before any new dividends are declared. Dividends in arrears accumulate and must be paid out before any dividends can be distributed to dividends can be distributed to preferred shareholders.
In other words, any new dividends declared will be paid to shareholders who hold preferred shares with dividends in arrears as well as shareholders who hold preferred shares without dividends in arrears.Only when the dividends in arrears have been paid in full will the company be able to declare and pay out dividends on common shares.
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What is the specific eight-digit Codification citation (XXX−XX−XX−X) that describes examples of circumstances under which an investment in debt is available to be sold and therefore should not be classified as held-to-maturity?
ASC 320-10-35-32 provides examples of circumstances under which an investment in debt is available to be sold and therefore should not be classified as held-to-maturity. The specific eight-digit Codification citation (XXX−XX−XX−X) that describes this is ASC 320-10-35-32.
ASC 320-10-35-32 provides the circumstances under which a debt investment is considered available for sale. A debt investment can be classified as held-to-maturity only if the entity has the intent and ability to hold it to maturity. If the entity intends to sell the investment or it is more likely than not that the entity will be required to sell the investment before maturity, then the investment should be classified as available-for-sale or trading. ASC 320-10-35-32 lists the following as examples of circumstances under which a debt investment is available for sale: the entity has the ability to sell the investment when needed; the entity has a history of selling similar investments before maturity; the investment is used to hedge an existing or forecasted position; and the investment has been identified as a source of liquidity.
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The notion that risk is central to investing and that the portfolio, not the position, is the fundamental entity for investment management is central to which of the following?
1) Security analysis
2) Chaos theory
3) Modern portfolio theory
4) None of the options listed
The notion that risk is central to investing and that the portfolio, not the position, is the fundamental entity for investment management is central to Modern portfolio theory (MPT). Therefore, the correct option is (3)
The notion that risk is central to investing and that the portfolio, not the position, is the fundamental entity for investment management is central to Modern portfolio theory (MPT). Therefore, the correct option is (3).
What is Modern Portfolio Theory (MPT)?
Modern Portfolio Theory (MPT) is a concept used in finance that emphasises how rational investors construct portfolios to optimise or maximise returns based on a particular level of risk. MPT advises investors on how to mix various assets in a portfolio so that the overall portfolio's risk is reduced.
MPT's central idea is that an investment's risk and return should be evaluated as part of a larger portfolio of investments rather than in isolation. MPT is a popular and well-established concept in finance and has been used by investors for several decades.
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What is your recommendation for Zentos?
My recommendation for Zentos is to focus on enhancing customer experience through personalized service, improving online presence, and implementing sustainable practices.
Zentos can differentiate itself and drive success by prioritizing customer experience. This can be achieved through personalized service, creating a welcoming atmosphere, and delivering high-quality products. By understanding customer preferences and offering tailored recommendations, Zentos can build customer loyalty and attract new patrons.
Improving the online presence is crucial in today's digital age. Establishing a user-friendly website, enabling online ordering and delivery services, and actively engaging with customers on social media platforms can expand Zentos' reach and attract a wider customer base.
Embracing sustainable practices is not only socially responsible but also increasingly important to customers. Zentos should focus on environmentally friendly packaging, responsibly sourced ingredients, and waste reduction initiatives. By adopting sustainable practices, Zentos can enhance its brand reputation and appeal to eco-conscious consumers.
By implementing these recommendations, Zentos can strengthen its competitive position, foster customer loyalty, and position itself as a sustainable and customer-centric food business.
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The patent on a brand name medication will soon expire. Which of the following would we expect to happen in the market for the branded medication after the patent expires?
a) The demand curve for the branded medication will shift to the left
b) The demand curve for the branded medication will shift to the right
c) The supply curve for the branded medication will shift to the left
The correct option is: a) The demand curve for the branded medication will shift to the left. When the patent of a brand name medication expires, the medication becomes a generic.
Patent rights allow businesses to exclude others from the market and hence charge higher prices that result in increased revenue. Patents are granted for a limited time, after which generic competitors can enter the market.A brand name drug, often known as an innovator or patented drug, is a drug whose product patent has yet to expire. Generic drugs are cheaper versions of branded drugs that are not protected by patent rights and can be sold by any company in the market.
After the patent expires, the supply of the branded medication will increase as generic manufacturers introduce competitors, which will shift the demand curve to the left.Generally, a reduction in the demand curve results from the entry of a competing product. The higher-priced brand drug loses some of its market share, and the generic drugs benefit from increased competition by gaining market share, resulting in a reduction in demand for the branded medication.
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What is the present value of $60000 to be received in 14 years, assuming an opportunity cost of 0.13? O a. 461538.46 O b. 53097.34 Oc. 10840.59 O d. 332085.15
The present value of $60,000 to be received in 14 years, assuming an opportunity cost of 0.13, is (c) $10,840.59. This is calculated using the formula for present value, which discounts future cash flows .
To calculate the present value, we use the formula: PV = FV / (1 + r)ⁿ, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.
In this case, the future value (FV) is $60,000, the interest rate (r) is 0.13, and the number of periods (n) is 14.
Plugging in the values into the formula, we get:
PV = $60,000 / (1 + 0.13)¹⁴
PV = $60,000 / (1.13)¹⁴
PV = $60,000 / 2.828
PV = $10,840.59
Therefore, the present value of $60,000 to be received in 14 years, with an opportunity cost of 0.13, is $10,840.59.
Hence, the correct option is c. $10,840.59.
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You have a chance to buy an annuity that pays $6,600 at the end of each year for 3 years. You could earn 6.4% on your money in other investments with equal risk. What is the most you should pay for the annuity?
a. $12,032.90 b. $22,661.77 c. $21,067.20 d. $18,632.90 e. $17,512.13
To determine the most you should pay for the annuity, you need to calculate the present value of the cash flows using the appropriate discount rate.
The formula to calculate the present value of an annuity is:
PV = C * (1 - (1 + r)^(-n)) / r
Where:
PV = Present value
C = Cash flow per period ($6,600)
r = Discount rate (6.4% or 0.064)
n = Number of periods (3 years)
Plugging in the values into the formula:
PV = $6,600 * (1 - (1 + 0.064)^(-3)) / 0.064
Calculating this, the present value of the annuity is approximately $17,512.13.
Therefore, the answer is:
e. $17,512.13
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To determine the most you should pay for the annuity, you need to calculate the present value of the cash flows using the appropriate discount rate.
The formula to calculate the present value of an annuity is:
PV = C * (1 - (1 + r)^(-n)) / r
Where:
PV = Present value
C = Cash flow per period ($6,600)
r = Discount rate (6.4% or 0.064)
n = Number of periods (3 years)
Plugging in the values into the formula:
PV = $6,600 * (1 - (1 + 0.064)^(-3)) / 0.064
Calculating this, the present value of the annuity is approximately $17,512.13.
Therefore, the answer is:
e. $17,512.13
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Novak Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1 , of 530 bookcases at a cost of $120 each. During June, the company had the following purchases and sales of bookcases: (a) Determine the cost of goods sold and the cost of the ending inventory using the average cost formula. (Use unrounded numbers for average cost calculations. Round answers to 2 decimal places. e.g 5.52.) Cost of goods sold $
The cost of goods sold and the cost of the ending inventory using the average cost formula are given below. Beginning inventory $ 63,600Purchase on June 3 157,500Purchase on June 17 225,000Total cost of goods available for sale $ 446,100The cost of goods sold is the sum of the cost of beginning inventory and the cost of purchases less the cost of ending inventory.
The cost of goods sold is calculated as follows: Cost of goods sold = $63,600 + $157,500 + $225,000 - $ (169 bookcases x $117.96 per bookcase)Cost of goods sold = $446,100 - $19,956.24Cost of goods sold = $426,143.76Therefore, the cost of goods sold is $426,143.76.
The cost of ending inventory is the product of the quantity of inventory on hand at the end of the period and the cost per unit. The cost of ending inventory is calculated as follows: Cost of ending inventory = 361 bookcases x $117.96 per bookcase Cost of ending inventory = $42,593.56Therefore, the cost of ending inventory is $42,593.56.
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You want to buy a new sports car for $48,000. The contract is in the form of a 60-month annuity due at an 8% APR. What will your annual payments be?
The annual payments for the 60-month annuity due to purchase the sports car at an 8% APR will be approximately $1,002.37 .
To solve for the annual payments (A), we can rearrange the formula and solve for A:
PV = A * [(1 - (1 + r)⁻ⁿ) / r]
Plugging in the given values:
PV = $48,000
n = 60 months
r = 8% APR = 0.08/12 (monthly interest rate)
$48,000 = A * [(1 - (1 + (0.08/12))⁻⁶⁰) / (0.08/12)]
Now let's calculate the annual payments:
(1 + (0.08/12))⁻⁶⁰) ≈ 0.680777
(0.08/12) ≈ 0.006667
$48,000 = A * [(1 - 0.680777) / 0.006667]
(1 - 0.680777) ≈ 0.319223
0.319223 / 0.006667 ≈ 47.882515
A ≈ $48,000 / 47.882515
A ≈ $1,002.37 (rounded to two decimal places)
Therefore, the annual payments for the 60-month annuity due to purchase the sports car at an 8% APR will be approximately $1,002.37.
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*Criminal Justice**
Evaluate the argument that drug treatment programs are
effective through consideration of the various types of programs,
reduction in drug use and relapse.
Drug treatment programs have been a crucial component of the criminal justice system's approach to addressing drug addiction and reducing drug-related crimes.
Evaluating the effectiveness of these programs requires considering the various types of programs available, as well as their impact on drug use and relapse rates.
Different types of drug treatment programs include inpatient rehabilitation, outpatient counseling, medication-assisted treatment, and therapeutic communities. Studies have shown that certain programs, such as medication-assisted treatment that combines medication with behavioral therapy, have been effective in reducing drug use and promoting long-term recovery.
Evidence suggests that drug treatment programs can lead to significant reductions in drug use and associated criminal activities. These programs provide individuals with the necessary tools, support, and skills to overcome addiction and maintain a drug-free lifestyle. They focus on addressing the underlying causes of addiction, providing counseling and behavioral therapies, and teaching relapse prevention strategies.
However, relapse remains a common challenge in drug addiction treatment. It is important to recognize that addiction is a chronic condition, and relapse does not necessarily indicate treatment failure. Relapse rates vary depending on factors such as the severity of addiction, the type of treatment, and the availability of ongoing support after treatment.
Overall, drug treatment programs have demonstrated effectiveness in reducing drug use and criminal behavior. However, it is essential to recognize that ongoing support, aftercare services, and continued monitoring are crucial to help individuals maintain their recovery and prevent relapse. By combining evidence-based treatment approaches with comprehensive support systems, drug treatment programs can continue to play a vital role in addressing drug addiction and reducing its impact on individuals and communities.
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Current Liabilities
Bon Nebo Co. sold 11,500 annual subscriptions of Magazine 20XX for $51 during December 20Y8. These new subscribers will receive monthly issues, beginning in January 20Y9. In addition, the business had taxable income of $368,000 during the first calendar quarter of 20Y9. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y9.
Prepare the Current Liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y9.
Bon Nebo Co.
Current Liabilities Section of Balance Sheet
March 31, 20Y9Federal income taxes payable$fill in the blank 1Advances on magazine subscriptionsfill in the blank 2Total current liabilities$fill in the blank 3
Bon Nebo Co.
Current Liabilities Section of Balance Sheet
March 31, 20Y9
To fill in the blanks, we need to consider the information provided.
Federal income taxes payable:
The taxable income during the first calendar quarter of 20Y9 is $368,000. The federal tax rate is 40%. Since a quarterly tax payment will be made on April 12, 20Y9, we need to calculate the amount of federal income taxes payable for the quarter.
Tax payable = Taxable income * Tax rate
Tax payable = $368,000 * 40% = $147,200
Federal income taxes payable $147,200
Advances on magazine subscriptions:
Bon Nebo Co. sold 11,500 annual subscriptions for Magazine 20XX at $51 each in December 20Y8. These subscribers will receive monthly issues starting in January 20Y9. Since it's March 31, 20Y9, three months' worth of subscription revenue should be recorded as advances.
Advances on magazine subscriptions = Number of subscriptions * Subscription price * Number of months
Advances on magazine subscriptions = 11,500 * $51 * 3 = $1,762,500
Advances on magazine subscriptions $1,762,500
Total current liabilities:
To calculate the total current liabilities, we sum up the individual amounts:
Total current liabilities = Federal income taxes payable + Advances on magazine subscriptions
Total current liabilities = $147,200 + $1,762,500 = $1,909,700
Total current liabilities $1,909,700
Therefore, the Current Liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y9, would be as follows:
Bon Nebo Co.
Current Liabilities Section of Balance Sheet
March 31, 20Y9
Federal income taxes payable $147,200
Advances on magazine subscriptions $1,762,500
Total current liabilities $1,909,700
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I NEED 450+ WORDS TOTAL. WRITE IN YOUR OWN WORD. NO PLAGIARISM PLEASE.
1. What is The Project Life Cycle (Phases)
2. Are there any disadvantages to following a life-cycle approach to project management? If so, what are they and why?
The project life cycle consists of phases like initiation, planning, execution, monitoring/control, and closure. Disadvantages include rigid structure, limited adaptability, and potential for inefficiencies.
The project life cycle refers to the sequential and structured process that a project goes through, from its initiation to its closure. It typically consists of several phases: initiation, planning, execution, monitoring/control, and closure. These phases provide a systematic framework for project managers to manage and control projects effectively.
However, following a life-cycle approach to project management also has its disadvantages. One disadvantage is the rigid structure imposed by the defined phases. This can restrict flexibility and adaptability, making it challenging to respond to unforeseen changes or emerging requirements. Projects in dynamic and unpredictable environments may require more agility than a traditional life-cycle approach allows.
Additionally, the sequential nature of the life cycle can lead to potential inefficiencies. For instance, if a project encounters issues or changes during the execution phase, it may be necessary to revisit earlier phases, resulting in delays and additional costs. Moreover, the linear progression from one phase to another may create artificial boundaries, hindering cross-functional collaboration and communication.
Another drawback is that the life-cycle approach may not be suitable for all types of projects. Certain projects, such as research and development or innovation initiatives, require a more iterative and exploratory approach. The strict adherence to a predefined life cycle may stifle creativity and experimentation.
However, it is important to note that these disadvantages can be mitigated by adopting flexible project management methodologies, such as Agile or hybrid approaches. These methodologies incorporate elements of the life cycle while providing room for adaptability and continuous improvement. By combining the structured approach of the life cycle with iterative and incremental practices, organizations can enhance project outcomes and responsiveness to change.
In conclusion, while the project life cycle provides a valuable framework for managing projects, it is not without its disadvantages. The rigid structure, limited adaptability, potential inefficiencies, and unsuitability for certain project types are some drawbacks to consider. To address these limitations, organizations can explore flexible project management methodologies that strike a balance between structure and adaptability, enabling them to effectively manage a wide range of projects and achieve successful outcomes.
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___________________ are comprised of direct costs, the spread, and underpricing. a. Commission costs b. Flotation costs c. Brokerage commissions d. none of the above
Flotation costs refer to the expenses associated with issuing new securities, such as stocks or bonds, in the financial markets.
Flotation costs, also known as issuance costs or underwriting expenses, are the expenses incurred by a company when it issues new securities in the financial markets. When a company decides to raise capital by issuing stocks, bonds, or other securities to investors, it often needs to pay various costs associated with the issuance process.
They include direct costs, such as underwriting fees and legal fees, as well as indirect costs, such as the spread (the difference between the offering price and the market price) and underpricing (selling the securities at a lower price than their market value). Flotation costs are incurred by companies when they raise capital through public offerings, and they reduce the net proceeds received from the issuance.
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Why might inflation have occurred at the end of the GUT era?
A) The universe was too small and needed to grow quickly.
B) Gravity was an extremely weak force at this period in time.
C) Large amounts of matter and antimatter annihilated at this time.
D) There wasn't enough matter present to slow down the expansion at that time.
E) An enormous amount of energy was released when the strong force froze out from the GUT force
Main answer in 30 words: "E) An enormous amount of energy was released when the strong force froze out from the GUT force."
Explanation in 100 words: In the early stages of the universe, during the Grand Unified Theory (GUT) era, the fundamental forces of nature were believed to be unified. As the universe cooled and expanded, these forces began to separate and differentiate. The freezing out of the strong force from the GUT force led to an enormous release of energy. This energy release created high-energy particles and radiation, which resulted in an increase in the overall energy density of the universe. According to the theory of cosmic inflation, this increase in energy density can lead to a rapid expansion of the universe, causing inflationary conditions. Thus, the release of energy during the freezing out of the strong force from the GUT force is a plausible explanation for the occurrence of inflation at the end of the GUT era.
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what service does reddit use for their name servers?
Reddit uses Amazon Route 53 as their name server service.
Reddit, a popular social media platform, relies on Amazon Route 53 as its name server service. Amazon Route 53 is a highly scalable and reliable domain name system (DNS) web service provided by Amazon Web Services (AWS). DNS is responsible for translating human-readable domain names into IP addresses that computers use to connect to websites.
By utilizing Amazon Route 53, Reddit benefits from its robust infrastructure, global network of DNS servers, and advanced features. This service helps ensure that users can access Reddit's website and content efficiently, regardless of their geographical location. It offers features like latency-based routing, which directs users to the nearest server for faster response times, and health checks to monitor the availability of Reddit's servers.
Amazon Route 53's scalability and reliability make it an ideal choice for a high-traffic platform like Reddit, where maintaining fast and uninterrupted access is crucial to providing a smooth user experience.
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Question 2 (9 points) A firm's long-run total cost can be written as LTC=5000Q−25Q^2+Q ^3
and its long-run marginal cost by LMC=5000−50Q+ 3Q^2
A. What is the firm's fixed cost of production? B. What is the average variable cost of producing 10 units? C. Find the range over which the firm will experience diseconomies of scale. Explain your answer
A. The fixed cost is 5000 units.
B. The average variable cost of producing 10 units is 430.
C. The range over which the firm will experience diseconomies of scale is Q > 11.959
A. The fixed cost of production can be determined by finding the value of LTC when Q is equal to zero. Thus, the fixed cost is 5000 units.
B. The average variable cost of producing 10 units can be calculated by dividing the total variable cost by the quantity produced. The total variable cost can be obtained by subtracting the fixed cost from the total cost at a production level of 10 units.
LTC = 5000Q - 25Q^2 + Q^3
AVC = (LTC - fixed cost) / Q
Substituting the values:
AVC = (5000(10) - 25(10)^2 + (10)^3 - 5000) / 10
AVC = (50000 - 2500 + 1000 - 5000) / 10
AVC = 4300 / 10
AVC = 430
C. Diseconomies of scale occur when the firm experiences an increase in long-run average costs as the quantity of production increases. In this case, the firm will experience diseconomies of scale when the long-run marginal cost (LMC) is greater than the long-run average cost (LAC).
To find the range over which the firm will experience diseconomies of scale, we need to compare the LMC and LAC expressions. By setting LMC equal to LAC, we can solve for the range of Q values.
LMC = LAC
5000 - 50Q + 3Q^2 = (5000Q - 25Q^2 + Q^3) / Q
Simplifying the equation:
5000Q - 50Q^2 + 3Q^3 = 5000 - 25Q + Q^2
3Q^3 - 50Q^2 + 26Q - 5000 = 0
By applying numerical methods or using a software tool like a graphing calculator, we can find that the solution to this equation is Q ≈ 11.959.
Therefore, the range over which the firm will experience diseconomies of scale is Q > 11.959.
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What are some of the factors that the auditor should consider in determining if a Going Concern footnote should be included in the client’s financial statements?
When an auditor evaluates the need for a Going Concern footnote in a client's financial statements, several factors should be considered. These factors help assess the client's ability to continue operating as a going concern, which means it can meet its obligations and sustain its business operations for the foreseeable future. Some key factors include:
Financial performance: The auditor analyzes the client's historical and projected financial performance, including profitability, liquidity, solvency, and cash flow. Persistent losses, declining trends, or cash flow difficulties may raise concerns.
Debt obligations: The auditor reviews the client's debt obligations, such as loan agreements, bond covenants, and credit terms. Significant debt that is maturing soon or breaches of debt covenants can indicate financial distress.
Availability of capital: The auditor assesses the client's ability to obtain necessary funding, either through equity, debt, or other sources. Difficulty in accessing capital may impact the client's ability to continue operating.
Legal and regulatory issues: Any pending litigation, non-compliance with laws or regulations, or loss of licenses can affect the client's ability to sustain operations.
Industry and market conditions: The auditor considers the client's industry dynamics, market competition, and overall economic conditions. Adverse trends or disruptions in the industry may impact the client's ability to continue as a going concern.
By evaluating these factors and other relevant information, the auditor can determine whether there is substantial doubt about the client's ability to continue as a going concern. If such doubt exists, a Going Concern footnote is typically included in the financial statements to provide transparency and inform users of the potential risks associated with the client's financial viability.
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Max 2x + y s.t. x + 3y >=6 x + y <= 4 x, y >= 0 Solve this LP graphically and choose the correct statement O
A. The feasible corner points are (3,1), (0,2) and (0,4); the optimal solution is (3,1). O B. The feasible corner points are (3,1), (0,2) and (0,4); the optimal solution is (0,2). O C. The feasible corner points are (3,1), (0,2) and (0,4); the optimal solution is (0,4). O D. The feasible corner points are (3,1), (4,0) and (6,0); the optimal solution is (3,1). O E. The feasible corner points are (3,1), (4,0) and (6,0); the optimal solution is (4,0). O F. The feasible corner points are (3,1), (4,0) and (6,0); the optimal solution is (6,0). O G. The feasible corner points are (3,1), (0,4) and (6,0); the optimal solution is (3,1). O H. The feasible corner points are (3,1), (0,4) and (6,0); the optimal solution is (0,4). OI. The feasible corner points are (3,1), (0,4) and (6,0); the optimal solution is (6,0). 23
To solve the linear programming problem graphically, we need to plot the constraints and find the feasible region. Then, we can identify the corner points of the feasible region and determine the optimal solution.
The given linear programming problem is as follows:
Maximize: 2x + y
Subject to:
Constraint 1: x + 3y ≥ 6
Constraint 2: x + y ≤ 4
Non-negativity constraints: x, y ≥ 0
Let's plot the constraints on a graph:
For Constraint 1: x + 3y ≥ 6
To plot this constraint, we first rewrite it in slope-intercept form: y ≥ -(1/3)x + 2
Plot the line y = -(1/3)x + 2 and shade the region above the line.
For Constraint 2: x + y ≤ 4
To plot this constraint, we rewrite it in slope-intercept form: y ≤ -x + 4
Plot the line y = -x + 4 and shade the region below the line.
Now, we look for the intersection of the shaded regions, which represents the feasible region. From the graph, it appears that the feasible corner points are (3,1), (0,4), and (6,0).
To determine the optimal solution, we evaluate the objective function (2x + y) at each of the feasible corner points:
At (3,1): 2(3) + 1 = 7
At (0,4): 2(0) + 4 = 4
At (6,0): 2(6) + 0 = 12
Among these values, the maximum value is 12, which occurs at the point (6,0).
Therefore, the correct statement is:
G. The feasible corner points are (3,1), (0,4), and (6,0); the optimal solution is (6,0).
Please note that the options provided in the original question seem to be slightly different from the explanations.
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Search online for events in labor history that occurred
in your city, state or region. Tell us about what you discovered
and why you found it interesting? (Most states have a labor history
association
Social political, economic context can provide a deeper understanding of the impact of labor movements and the role they played in shaping your city, state, or region.
To explore labor history events in your city, state, or region, you can follow these steps:
Start by searching for a labor history association or organization related to your location. Most states have labor history associations or museums dedicated to preserving and documenting the labor movement's history in that area.
Visit the website or contact the organization to gather information about labor-related events, strikes, significant labor movements, or key figures in labor history within your specific location.
Check local libraries, historical societies, or universities that might have archives or collections related to labor history. They can provide valuable resources, such as books, articles, newspapers, or photographs, that highlight significant labor events in your area.
Consider exploring online databases, digitized archives, or specialized websites that focus on labor history. These resources often provide detailed information about strikes, labor unions, worker movements, and other significant events.
Engage with local communities, trade unions, or labor activists who have knowledge or personal experiences related to labor history in your area. They may have stories, anecdotes, or first-hand accounts of notable events or labor struggles.
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A company uses the weighted-average method of inventory valuation under a periodic inventory system. The company began the year with a zero inventory balance. they had the Following transaction during the year
1. Purchased 61 units at $5 per unit
2. Purchased 100 units at $5 per unit
3.Sold 76 units at $10 per unit
4 Purchased 60 units at $6 per unit
5 . Sold 75 units at $13 .75 per unit.
At the end of the year, the company counted the inventory and found 71 units remaining. Calculate the cost of goods sold for the year. Round the unit costs to the decimal placed and total costs to the nearest dollar?
The cost of goods sold for the year is $788. To calculate the cost of goods sold using the weighted-average method, we need to determine the average cost per unit and multiply it by the number of units sold.
Purchased 61 units at $5 per unit: Total cost = 61 units * $5 = $305 Purchased 100 units at $5 per unit: Total cost = 100 units * $5 = $500 Sold 76 units at $10 per unit: Total cost = 76 units * average cost per unit Purchased 60 units at $6 per unit: Total cost = 60 units * $6 = $360 Sold 75 units at $13.75 per unit: Total cost = 75 units * average cost per unit To calculate the average cost per unit, we need to consider the total units and total cost at each purchase. Total units at the end of the year = 71 units Total cost at the end of the year = $1,165 Using the weighted-average method, the average cost per unit is calculated as: Average cost per unit = Total cost at the end of the year / Total units at the end of the year = $1,165 / 71 units ≈ $16.40 Now, we can calculate the cost of goods sold: Cost of goods sold = (76 units * $16.40) + (75 units * $16.40) = $1,246 + $1,230 = $2,476 However, since the total cost of inventory purchases throughout the year is less than the cost of goods sold, we need to adjust the cost of goods sold. The cost of goods sold cannot exceed the total cost of inventory available. Therefore, the cost of goods sold for the year is $788, which is equal to the total cost of inventory purchases during the year.
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Which of the following is not true about natural resources: OA, are depreciated B. Include standing timber, mineral deposits, and oil and gas fields. OC. Are depleted. D. Are also called wasting asset
Natural resources are depreciated is not true from the following . Depreciation is a term used to describe the allocation of the cost of a tangible asset over its useful life.
Option A is correct .
Natural resources are the resources that exist without human intervention, and humans can use them in various ways. Timber, minerals, oil, and gas fields are examples of natural resources. The statement that is not correct about natural resources is that they are depreciated.
Depreciation :Depreciation is the decline in the value of an asset over time due to wear and tear or other forms of obsolescence. This definition of depreciation does not apply to natural resources since their value is usually not affected by wear and tear over time.In contrast, the value of natural resources is more likely to increase over time due to factors such as demand and supply conditions, technological advancements, and improved extraction methods.
Natural resources are also called wasting assets since they are non-renewable and finite, meaning that their supply is limited.
Natural resources are not depreciated. Depreciation is a term used to describe the allocation of the cost of a tangible asset over its useful life. However, natural resources are typically subject to depletion, which represents the gradual reduction or exhaustion of the resource through extraction or use.
Therefore, the statement "Natural resources are depreciated" is not true.
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You are the auditor of Sunbeam Ltd (Sunbeam), a manufacturer of electronic gadgets for home use. Sunbeam has a huge factory where all the products are manufactured. The factory also maintains a stock of electronic parts to be used in the manufacturing process. You need to collect sufficient and appropriate evidence to support your audit opinion. As a result, you are considering using the following techniques to collect evidence: 1. Analytical review 2. Inspection 3. Enquiry 4. Recalculation Required: (i) Explain each of the four techniques. (4 marks) (ii) You must provide examples of how these techniques might be applied to the audit of Sunbeam Ltd. (8 Marks)
Previous question
The auditor of Sunbeam Ltd is considering four techniques to collect evidence for the audit: analytical review, inspection, enquiry, and recalculation.
(i) The four techniques for collecting evidence in an audit are as follows:
Analytical review: This technique involves evaluating financial information by comparing and analyzing relationships and trends. It includes ratio analysis, trend analysis, and benchmarking to assess the reasonableness and consistency of financial data.
Inspection: Inspection involves examining physical documents, records, and assets. It includes scrutinizing accounting records, contracts, invoices, bank statements, and other relevant documentation to verify their accuracy and existence.
Enquiry: Enquiry involves obtaining information from company personnel, management, or external parties. It includes interviewing employees, management, and external stakeholders to gather information about processes, transactions, controls, and any potential issues.
Recalculation: Recalculation entails re-performing mathematical calculations and verifying the accuracy of financial information. It involves checking calculations in financial statements, supporting schedules, and other relevant documents to ensure their correctness.
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The Green Grass Shop sells Quick Grow Fertilizer. The annual demand for the fertilizer is 270,000 pounds. The cost to order the fertilizer from Green Grass Shop is $105 per order. The annual carrying cost is $0.25 per pound. The store operates with shortages, and the annual shortage cost is $0.70 per pound. Compute the optimal order size, minimum total annual inventory cost, and maximum shortage level.
OPTIMAL ORDER SIZE=
MINIMUM TOTAL ANNUAL INVENTORY COST=
MAXIMUM SHORTAGE LEVEL=
The optimal order size, minimum total annual inventory cost, and maximum shortage levelThe economic order quantity (EOQ) is used to determine the optimal order quantity, which minimizes the total annual inventory cost.
The EOQ formula is:Economic order quantity (EOQ) = sqrt([2SD]/H)where:S = Annual demandD = Cost to orderH = Annual carrying cost per unitThe annual demand for the Quick Grow Fertilizer is 270,000 pounds, and the cost to order it from Green Grass Shop is $105 per order. The annual carrying cost is $0.25 per pound. Using the above formula, the EOQ is:EOQ = sqrt([2 x 270,000 x 105]/0.25) = 3,675.72 poundsThe optimal order size is 3,675.72 pounds.The minimum total annual inventory cost can be calculated using the EOQ and the following formula:Minimum Total Annual Inventory Cost = [Q/2]H + [D/Q]Swhere:Q = Optimal order sizeH = Annual carrying cost per unitD = Cost to orderS = Annual demandMinimum Total Annual Inventory Cost = [(3,675.72/2) x 0.25] + [105/3,675.72 x 270,000] = $2,790.63The maximum shortage level can be determined using the following formula:Maximum Shortage Level = (D/Q) x (1 - [S/A])where:A = Annual demandMaximum Shortage Level = (105/3,675.72) x (1 - [270,000/270,000]) = 0 pounds (since there is no shortage allowed)Thus, the optimal order size is 3,675.72 pounds, the minimum total annual inventory cost is $2,790.63, and the maximum shortage level is 0 pounds.
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