Answer:
Both companies will reduce their prices.
Explanation:
Given that collusion is not possible between McDonald's and Yum, both companies will try to earn more money by reducing their prices and increasing their profits to $70 million. They will do this hoping that the other firm doesn't modify its pricing strategy.
A not-for-profit hospital pays $150,000 interest on its bonds outstanding. The bonds were issued to finance construction of a new hospital wing. In its statement of cash flow, the interest should be shown as a cash outflow from
a. noncapital financing activities
b. capital financing activities
c. operating activities
d. investing activities
Answer:
c. operating activities
Explanation:
Operating activities -
It is the activity of the functions of the business which is directly linked via providing the respective services and goods in the market , is known as operating activities .
It is the core business activity of the company , like the marketing , distributing , selling the services or goods and manufacturing .
It is responsible for the majority of the cash flow within the company .
Hence , from the question , the correct term according to the given data is c. operating activities .
Edith works for Fast Trades, Inc., a brokerage that facilitates frequent, quick securities transactions for investors. Edith steals her employer's computer program to start up her own competing business, Get Rich Quick, Inc. This is
Answer:
larceny
Explanation:
Larceny refers to the act of stealing someone else's property, it's what most people think of as stealing or theft. Although theft is a broader legal term that can be divided into larceny and burglary (when you steal something by using force). Larceny is considered a misdemeanor and is usually punishable with a fine or up to 1 year of prison time.
Edith's act of stealing her employer's computer program is a form of intellectual property theft and economic espionage, illegal acts that violate intellectual property laws and business ethics.
Edith's actions of taking her employer's computer program to start her own competing business in the context of Fast Trades, Inc. falls under the category of intellectual property theft. Intellectual property laws are designed to protect the creators of original works, which includes software. By stealing the program, Edith is not only violating the trust of her employer but also committing an illegal act called economic espionage, which could be punished under laws that protect trade secrets.
In a similar narrative, the movie 'Wall Street illustrates the allure and consequences of insider trading, yet another breach of financial regulations and ethics. While insider trading involves the misuse of confidential information for financial gain, intellectual property theft involves taking proprietary technology or ideas. However, both acts are prosecuted to preserve fairness and integrity in business and financial markets.
A firm that is pursuing a(n) _____ strategy is simultaneously trying to achieve low costs through location economies, economies of scale, and learning effects, and trying to differentiate its product offering across geographic markets.
Answer: Transnational strategy
Explanation:
The transnational strategy is the type of method that allow the organization for maintaining all the foreign functions an also achieve the low cost due to the location economic.
The Transnational strategy is one of the type of strategy which allow the organization for initiate the various types of functions for preserving the central coordination in the particular location.
This strategy basically differentiate between the product across the geographical market and also foster the various types of multinational skills in the global network.
During project executing, a team member comes to the project manager because he is not sure what work he needs to accomplish on the project. Which of the following documents contains detailed descriptions of work packages?A. WBS dictionaryB. Activity listC. Project scope statementD. Scope management plan
Answer:
The correct answer is A. WBS dictionary.
Explanation:
The WBS (work breakdown structure) or Work Decomposition Structure (WDS) provides a common reference framework for all project elements and for the estimation and programming of specific tasks within the project. time, resources and quality within the project plans.
A good work breakdown structure encourages a systematic planning process, reduces the possibility of omitting key elements of the project, and simplifies the project through its division into manageable units. It is a tool to follow the progress of the project.
If WBS is used as the common skeleton for programming and for estimation, communication between professionals working on the project will be facilitated.
A WBS is, or should be, a uniform, consistent and logical method of dividing a project into smaller, more manageable components for planning, estimation and control.
A WBS oriented to deliverables facilitates and encourages the exchange of information. Ideally, there should be some uniformity and consistency in the WBS. In order to achieve uniformity, "all children of the same father" must be developed on the basis of the same base.
The ultimate goal is to achieve a WBS that highlights a logical organization of products, components and modules.
The WBS Dictionary contains detailed descriptions of work packages, offering the needed clarification for a team member unsure of their project tasks. Option A
Explanation:The document that contains detailed descriptions of work packages in a project is the WBS Dictionary. The Work Breakdown Structure (WBS) Dictionary is designed to provide detailed information about each component in the Work Breakdown Structure, including work packages.
It includes detailed activities, deliverables, and timelines for each piece of the WBS. Therefore, when a team member is unsure about the specifics of the tasks they are required to perform, the WBS dictionary is the go-to document for clarification.
Other documents listed are important for project management, but the WBS dictionary specifically provides the level of detail about the work to be performed under each work package. The Activity List is generally a breakdown of the work packages into the individual activities required to complete them.
The Project Scope Statement provides an understanding of the project scope, including the major deliverables and project assumptions and constraints. The Scope Management Plan describes how the project scope will be defined, validated, and controlled. Option A
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Marketing manager Ricki Stephens reviewed her marketing information system to learn who was buying her company's products and at what stores they were buying. She found this internal and external data in her company's ________.
A.data warehouse.
B. big data set.
C. market research network.
D. annual report.
E. focus group
Answer:
Letter A is correct. Data warehouse.
Explanation:
Data warehouse acts as a digital data warehouse of the company, whose main purpose is to store relevant information about the organization so that through history it can provide reports that help the company in the decision making process according to the facts found.
The biggest benefits found in the database system are greater flexibility and control of information and research, and the creation of standards that correct data and coordinate and optimize system data to ensure greater effectiveness.
Assume that a family spends 35% of its income on housing, 20% on travel-related expenses, 10% on utilities, 25% on health care, and 5% on miscellaneous items. Demand for which category will be most responsive to a change in price?
Answer:
We need the slope of each category.
Explanation:
Having the amount of each category is not enough to find the responsive of each one of them to a change in their prices, we need a measure called elasticity, this indicator measures the responsive of a product to a change in its price.
Which of these can be listed as benefits of filing your tax return online?
I. Allows you to claim a larger number of deductions
II. Allows for faster receipt of any refunds due
III. Allows for greater accuracy when filing
Answer:
The correct answer is (II) and (III)
Explanation:
Electronic tax return forms enable you to make online instalments, which are quicker and less difficult than paying with a money order. There is no possibility of an electronic instalment being lost via the post office. It helps to pay your bills on time and it allow to have a greater accuracy of filling, that means the chances of mistakes are minimal while filling online tax returns.
Changes in weather patterns are increasing administrative costs for insurance companies. These added costs often exceed the amount of the premiums coming in and claim payments going out. To address this problem, insurance companies typically
Answer:
buildup the amount of their reserves
Explanation:
Based on the information provided within this question it can be said that in order to address this problem, insurance companies typically buildup the amount of their reserves. By doing this the company's have a sort of "escape plan" allowing them to pay these excess costs that they would otherwise not be able to pay since it exceeds the amount that they are making.
What is it called when banks record which account gives up money and which account receives money when a customer writes a check? net worth the discount rate the federal funds rate check clearing
Answer:
check clearing
Explanation:
Answer:
Check Clerking
Explanation:
Gradpoint
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the __________ role in the company's buying center.
a. user
b. initiator
c. gatekeeper
d. buyer
e. influencer
Answer:
e. influencer
Explanation:
Influencer -
Is a person , that influences other person for any task like , work , dressing style , makeup etc , is known as an influencer .
Hence , from the question ,
The engineers of the Raycom construction plays the role of influencer in the company's buying center .
Therefore , from the question ,
the correct term for the given statement is e. influencer .
The Raycom engineers will primarily play the "influencer" role in the company's buying center. They will provide detailed specifications and recommendations for the heavy-duty equipment needed to install the new pipeline in northern Alaska. Therefore, option eis correct.
The term "influencer" within the context of a buying center refers to the individuals or groups who possess expertise and knowledge relevant to a purchasing decision and have the ability to influence the final buying choice.
In the case of Raycom Construction's pipeline project in northern Alaska, the engineers fulfill the influencer role by leveraging their technical expertise to provide detailed specifications and recommendations for the heavy-duty equipment required.
Their input carries significant weight in shaping the final decision, as they possess the specialized knowledge necessary to assess the equipment's suitability and performance for the specific project requirements.
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Sonny's Surfer Shop produces and sells custom surf boards. Assume that labor is the only input that varies for the firm. The firm's owner has determined that if she hires 10 workers, the firm can produce 10 surf boards per day. If she hires 11 workers, the firm can produce 12 surfboards per day. The firm sells each surfboard for $2,000 . and it pays each of its workers $200 per day. Which of the following is correct?a. For the 11th worker, the value of the marginal product of labor is $400.b. For the 11th worker, the value of the marginal product of labor is $4,000.c. The firm should not hire the 11th worker since hiring this worker reduces profit.d. In order to justify hiring the 11th worker the firm will need to raise the price of a surfboard.
Answer:
B) For the 11th worker, the value of the marginal product of labor is $4,000.
Explanation:
The marginal product of labor (MPL) of a company is the total change in output achieved by hiring an additional worker. To calculate the MPL we have to multiply the change in output (measured in units) times the revenue generated by every extra unit of output.
In this case, the MPL = 2 surfboards x $2,000 per surfboard = $4,000
While you were visiting a friend, someone robbed their apartment and stole your laptop computer. Unfortunately, they did not have renter's insurance. Where can you look for help to replace your computer
Answer:
The correct answer is Your homeowners insurance policy .
Explanation:
A standard homeowners insurance policy includes four essential types of coverage:
Coverage for the structure of your house. Coverage for your personal belongings. Civil liability protection. Additional expenses in case you cannot live in your house temporarily due to a fire or other disaster that is insured in your policy.2. Coverage for your personal belongings . Your furniture, clothing, sports equipment and other personal items are covered if they are stolen or destroyed by a fire, hurricane or other disaster stipulated in the policy. Most companies provide coverage of between 50% and 70% of the amount of insurance you have for the structure of your property. So if you have a $ 100,000 premium on your insurance for the structure of your property, you would have between $ 50,000 and $ 70,000 of coverage for your belongings. The best way to determine if you have sufficient protection is through an inventory.
This part of your policy includes protection for your personal belongings when they are away from home (off-premises). This means that if you decide to have this type of coverage, your belongings are covered anywhere in the world. Some companies limit the amount to 10% of the total insurance you have for your possessions. In addition, you have coverage of up to $ 500 for charges that you had to pay for fraudulent use that could be a victim for you and your credit cards.
To set its sales force size, a company can first group accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the ______ approach.
Answer: Workload
Explanation:
The workload approach is one of the type of method that set the size of the sales force and also helps to reduce the complexity.
It higher the volume of the products for establish the practice between the customers and manufacturing the products. The workload approach mainly focus on the various types of management issue such as marketing communication, market sharing goals and the pricing and the investment.Therefore, Workload approach is the correct answer.
The unemployment that is caused by changes in the economy, such as shifts in manufacturing techniques, increased use of computers and electronic machines, and increases in the production of services instead of goods, is called_________.A. frictional unemployment.B. cyclical unemployment.C. natural unemployment.D. structural unemployment.
Answer:
D. structural unemployment.
Explanation:
D
Structural unemployment is caused by changes in the economy, such as shifts in manufacturing techniques, increased use of computers and electronic machines, and increases in the production of services instead of goods.
Structural unemployment is caused by technological change.
Cyclical unemployment is caused by business cycles. In down turns, unemployment rises and falls during a boom.
Frictional unemployment is the period between when Labour leaves his job and gets another one.
Bob works as a forklift driver in a manufacturing plant. When he is at work, he is covered by workers compensation insurance. His employer has also included a major medical plan as part of his benefit package, so Bob is also covered by insurance outside of working hours, as well. Which insurance term best describes this arrangement?1. Combination coverage2. 24-hour coverage3. Comprehensive coverage4. Workers medical coverage
Answer:
2. 24-hour coverage
Explanation:
Based on the description being provided based on Bob's workers compensation coverage policy it seems that his arrangement is best described as a 24-hour coverage. This refers to a policy that covers the individual at all times, 24 hours a day. While the individual is at work as well as when they are outside of work.
Suppose that a new government is elected in Lawrencia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Lawrencia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably __________.
a. Raise real GDP per person and productivity in Lawrencia.
b. Raise real GDP per person but not productivity in Lawrencia.
c. Raise productivity but not real GDP per person in Lawrencia.
d. Raise neither productivity not real GDP per person in Lawrencia.
Answer:
The correct answer is option A
a. Raise real GDP per person and productivity in Lawrencia
Explanation:
GDP per capita shows the GDP per person in a country and is calculated as GDP/population.
A high GDP per capita shows the progress and productivity of the country. Therefore for a long lasting effect in Lawrencia, the GDP per person will increase progressively as well as productivity.
After analyzing the data on cab services in Lucitona, the Transport Authority of Lucitona discovered that there was an 85 percent increase in the number of people using cab services on rainy days. In the context of data mining, the Transport Authority of Lucitona discovered a(n) _____.
a. affinity pattern
b. data cluster pattern
c. sequential pattern
d. extrapolative pattern
Answer:
A) affinity pattern
Explanation:
Affinity patterns show associations that occur among objects in the real world. These objects that show affinity patterns or association patterns are not complementary to each other and sometimes may not even be related to each other.
In this case, the fact that it is raining is probably what causes the 85% in cab service usage. If we analyze them separately, cab service and rain have nothing to do with each other, but when it rains more cabs are used.
Steven, a construction worker, tends to buy a new gadget if most of his friends have them and only after they've teased him about not having the gadget yet. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that when it comes to the diffusion of innovation, Steven belongs to the group of _____.
a. innovatorsb. early majorityc. late majorityd. early adopters
Answer: late majority
Explanation: In simple words, it refers to the group of people who are last to accept a new technology or product that comes to the market.
These are the group of individuals who remains satisfied with their existing level of technical knowledge and utility and are resistant to any change with respect to it.
In the given case, Steven adopted for new gadget only when his friends pressurized him to do so. Thus, we can conclude that Steve belongs to the group of late majority.
Which of the following scenarios describes an offer?a.Raoul asks Wendy if she would be willing to sell her first-edition copy of War and Peace.b.Wendy replies, "I couldn't possibly part with that book for less than a couple thousand dollars."
Answer: A -Raoul asks Wendy if she would be willing to sell her first-edition copy of War and Peace.
Explanation: An offer is a legal term used in a contract. An offer is made by an intending buyer to an intending seller regarding a product or service.
The offer is a legal question that is asked by a willing buyer if the seller of the product would consider selling it or not.
An offer can be accepted or declined by the person being made the offer.
The scenario that describes an offer from the original question is D. Luther says to Consuela, "My son needs tutoring in Spanish. I'd like you to come to my home on Monday and Wednesday nights beginning next week for two-hour sessions, and I'll pay you $40 per hour. I'd like you to tutor him for the next three months."
What is an offer?An offer is a legal term in a contract that describes the promise that one party makes to the other party.
This offer states what the party that made the offer will give to the other party, if the other party engages in a certain action.
Luther in this scenario, made an offer to Consuela and promised to pay a certain amount if Consuela teaches his son.
In conclusion, option D is correct.
Options to this question include:
A. KD Lamp Company sends out a catalog to customers that lists prices for various types of light bulbs.
B. Raoul asks Wendy if she would be willing to sell her first-edition copy of War and Peace. Wendy replies, "I couldn't possibly part with that book for less than a couple thousand dollars."
C. Nestor places an antique pocket knife, which he inherited from his father, up for auction. He tells the auctioneer that he hopes to get at least $250 for the knife.
D. Luther says to Consuela, "My son needs tutoring in Spanish. I'd like you to come to my home on Monday and Wednesday nights beginning next week for two-hour sessions, and I'll pay you $40 per hour. I'd like you to tutor him for the next three months."
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When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible. True or False
Answer:
False
Explanation:
Allowance for Doubtful Accounts account is a contra asset account. In this case it would lower the value Accounts Receivable account.
So when you use the write-off method for uncollectible receivables, the account Allowance for Doubtful Accounts is CREDITED. When an asset decreases, it should be credited.
Identify the purpose of antitrust legislation.
Answer and Explanation:
Antitrust laws are referred to as the laws which tend to advocate, protect and also advertise competition, i.e. the competitive transformation in the definite line of the commerce i.e. the well defined markets. This most commonly is known to be the sole purpose of the antitrust legislation. These legislation are known not to penalize the big organizations based on the detail of the size.
Andre Company does not segregate sales and sales taxes when it charges customers at the register. Its register total for a given day is $5,724, which includes a 6% sales taxes. How much should be recognized as sales revenue and sales taxes payable, respectively?
a. $5,000 and $724
b. $5,437.80 and $286.20
c. $5,381 and $343
d. $5,400 and $324
e. $5,724 and $0
Answer:C- $5,381 and $343
Explanation:
Andre Company had sales of $5,724 which has a 6% sales tax included in the sales.
Therefore we need to calculate what the sales tax component in the sales figure is. It is calculated thus:
Total sales including tax = $5, 724
Sales tax charged is 6%
Therefore actual sales = $5,724 * 6%
Equals $343
Adjusted sales is $5,724-$343= $5,381.
Adjusted Sales figure is $5,381
Tax on sales is $343
The correct amounts to be recognized are $5,400 as sales revenue and $324 as sales taxes payable, which corresponds to option d. This is determined by dividing the total register amount by 1.06 to separate the taxable sales from the included 6% sales tax.
The student is asked to calculate the amounts that should be recognized as sales revenue and sales taxes payable when the total register amount includes sales tax. The total amount collected is $5,724, which includes a 6% sales tax.
To find the sales revenue and the sales taxes payable, we first need to separate the total amount into the taxable sales and the sales tax itself. To do this, we'll use the following formula where t is the total amount collected, r is the sales revenue, and s is the sales tax rate:
r + (r × s) = t
Let's convert the sales tax rate to decimal form (6% = 0.06) and rearrange the equation to solve for r:
r (1 + s) = t
r (1 + 0.06) = $5,724
r = $5,724 / 1.06
r = $5,400
Now, the sales tax amount can be determined by subtracting the sales revenue from the total amount collected:
Sales taxes payable = t - r
Sales taxes payable = $5,724 - $5,400
Sales taxes payable = $324
So the correct answer is that the sales revenue is $5,400 and the sales taxes payable is $324. This corresponds to option d.
the traditional concept concerning employer or employees' free decision on termination in non unionized organizations is termed as_________________.
Answer:
Employment at will.
Explanation:
Answer:
Employment at will
Explanation:
IS a term used un the U.S,. labor law, for contractual relationships in wich an employee can be dismissed by an employer for any reason, and whitout warning, as long as the reason is not illegal.
I'maGoldMiner has benefited from a record rise in gold prices in the global commodities market. While the price of its output is highly influenced by market speculation, if it wants to increase production to take advantage of the current profit-maximizing opportunity, the company
a) must accept market price for its physical capital inputs.
b) must reduce what it pays for inputs that make up its costs of production.
c) must reduce production to encourage speculators to drive gold prices higher.
d) must alter the price of its labor inputs to maximize profits.
Answer:
a) must accept market price for its physical capital inputs.
Explanation:
The price of gold in the commodity market is being influenced by market speculation. Market speculation implies investors are trying to profit from the changing prices of gold. When the market is active, the price of gold will be moving up and down depending on demand.
The current prices are high is a motivation to sell. For I'maGoldMiner to profit from the current high prices, it must continue with production. In the event the prices of physical capital inputs change, the company must accept the new prices. The high selling prices will assist the company in absorbing any changes input costs. That way, the company will maximize on the current high prices.
Final answer:
The correct response is that I'maGoldMiner must accept the market price for its physical capital inputs. They have no control over these prices, and must deal with them as they come.
Explanation:
If I'maGoldMiner wants to increase production to take advantage of the current profit-maximizing opportunity due to a record rise in gold prices, the company must navigate the economic principles of supply and demand. When demand for the good produced increases, leading to higher output price and profitability, producers typically require more labor to increase production. However, in the case of physical capital inputs, the firm must often accept the market price, which is influenced by external factors beyond their control, similar to petroleum for chemical companies or coffee for coffee shops. On the other hand, labor costs may be more controllable; although, altering them significantly to maximize profits must be done within the competitive labor market context.
The correct answer to this question is option (a) the company must accept market price for its physical capital inputs. Companies generally cannot control the market prices for their inputs, especially commodities like gold, which are subject to international market dynamics. Attempting to alter labor costs can be a strategy, but this can only be done within the limits of market competitiveness and labor laws.
The production function is Select one: a. influenced by the productivity of workers. b. the marginal revenue produce minus the wage rate paid to workers. c. the increase in the amount of output from an additional unit of labor. d. All of the above are correct.
Answer:
D, all of the above are correct.
Most employees at Quokka Systems are organized into project teams. Employees report to the project leader, but they also report to a leader responsible for their functional specialization (such as engineering or marketing). Quokka Systems has a:__________
a. Simple structure
b. Matrix structure
c. Divisional structure
d. Functional structure
e. Network structure
Answer:
The correct answer is b. Matrix structure .
Explanation:
The matrix organizational structure is atypical as it brings together employees and managers of different departments to work towards achieving a goal. The matrix structure is a combination of functional and division structures. The first divides departments within a company of developed functions, while the second divides them by products, customers or geographic location. Small business owners must understand the benefits and limitations of the matrix structure before implementing it in their businesses.
One of the advantages of applying a parent organization structure in a business is that it can lead to an effective exchange of information. Departments work closely and communicate with each other frequently to solve problems. Efficient lines of communication improve productivity and allow rapid decision making. For example, in a matrix structure, people in the marketing, finance and product departments can confer with others to formulate strategies. The exchange of specialized information allows administrators to respond quickly to the needs of customers and their organization.
Bruner Stores wants to have 500 shovels in ending inventory on December 31. Budgeted sales for December are 1,950 shovels. The November 30 inventory was 320 shovels. How many shovels should Benson Stores purchase for December?
Answer:
Purchases = 2100 shovels
Explanation:
given data
ending inventory = 500 shovels
Budgeted sales = 1,950 shovels
inventory = 320 shovels
to find out
How many shovels should Benson Stores purchase for December
solution
we know here ending inventory formula that is express as
Ending inventory = Beginning inventory + Purchases - Sales .......................1
put here value we will get Purchases
so that
500 = 320 + Purchases - 1950
Purchases = 500 + 1950 - 350
Purchases = 2100 shovels
You are a manager in a supermarket. One evening, you hear raised voices and see Chuck shouting at a customer, "I’m not going to put the bread in a separate bag! I’m going to put it in the top of this bag so it doesn’t get squashed. That’s good enough!" Because yelling at customers is not allowed, you intervene and take care of the customer, and you ask Chuck to meet you in the office. There you use____________suspending Chuck without pay for the rest of his shift, to try to prevent this behavior from happening again.
Answer:
punishment
Explanation:
Basically, the manager is trying to change the behavior of his employee, Chuck. In management and organizational psychology, that is often referred to as the reinforcement theory of motivation.
In this example, the manager uses remuneration punishment in order to alter Chuck's noted behavior pattern.
NOTE - This is not to be confused with negative reinforcement, which is also related to the reinforcement theory. Although the term negative may imply some similarities with punishment, negative reinforcement is a different concept. While punishment is directly weakening the unwanted behavior, negative reinforcement is strengthening a desired behavior, by means of removing an unwanted consequence for the employee when he follows the wanted behavior pattern.
For example, a form of negative reinforcement would be if Chuck knew upfront that his pay would be reduced if he yelled at his customers and he avoided yelling in the first place because of that.
The market for beef is in long-run equilibrium at a price of $3.25 per pound. The announcement that mad cow disease has been discovered in the United States reduces the demand for beef sharply, and the price falls to $2.00/pound. If the long-run supply curve is horizontal, then when long-run equilibrium is reestablished the price will be:
a. $5.25 per pound.
b. $3.25 per pound.
c. $1.25 per pound.
d. $2 per pound.
e. greater than $2 per pound, but less than $3.25 per pound.
Answer:
C
Explanation:
i think i have seen this qestoin before :)
A local barbecue joint makes one massive batch of potato salad each day. If they run out of this 37) savory side before the end of the day, their last few customers are less than satisfied, but if they make too much, they sell it to the local hog farmer for feed. Every serving costs an equivalent of $0.23 to make, but can be sold for $2.50 to customers and for $0.12 to the hog farmer. The average daily demand is for 400 servings with a standard deviation of 40 servings.How many servings should be made each day?A) 462
B) 455
C) 467
D) 453
Answer:
option (C) 467
Explanation:
Data provided in the question:
Every serving costs = $0.23
Selling cost to customer = $2.50
Selling cost to hog farmer = $0.12
Average daily demand, d = 400
Standard deviation, s = 40 servings
Now,
Cs = Selling price - Cost
= $2.50 - $0.23
= $2.27
Co = Cost - Discounted price
= $0.23 - $0.12
= $0.11
Service level = [tex]\frac{Cs}{Cs+Co}[/tex]
= [tex]\frac{\$2.27}{\$2.27+\$0.11}[/tex]
= 0.9537
For the service level of 0.9537, the z value from the standard z table = 1.68
Therefore,
Servings made each day = d + zs
= 400 + 1.68 × 40
= 467.2 ≈ 467
Hence,
The correct answer is option (C) 467