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Northwest Calculators, Inc. purchases plates used in the manufacture of calculators directly from the supplier. Northwest's calculator production operation, which is operated at a constant rate, will require 10,000 plates per month throughout the year (120,000 units annually). Assume that the ordering costs are $30 per order, the unit cost is $1.50 per component, and annual holding costs are 15% of the value of the inventory. Northwest has 250 working days per year and a lead time of 7 days. Answer the following inventory policy questions:
a. What is the EOQ for this component?
b. What is the reorder point?
c. What is the cycle time?
d. What are the total annual holding and ordering costs associated with your recommended EOQ?
The utility function of a worker is represented by U(C,L) = C×L. Suppose this person currently has 100 hours of leisure and $1200 in consumption in a given time period. What must the worker’s hourly wage rate be if she is maximizing her utility?
A price-taking ?rm selling in a market with a price greater than the ?rm's average total cost should:
Assume that Indonesia is a small open economy. Explain how a decrease in the level of taxes (T ∗ ) in the rest of the world affects the world interest rate, the Indonesian interest rate, level of investment, net exports and net capital outflows in In..
Derive an equation for marginal revenue of the monopolist. Graph the demand and marginal revenue curves.
Illustrate what would be the production possibility frontiers for Brazil as well as the United States.
Apple feels it is a price leader in the mobile phone market with all the other producers acting as followers. The total demand for mobile phones is given. If Apple wants to maximize profits, how many mobile phone units should they produce? How much s..
Draw a graph that illustrates the demand and supply of a perfectly competitive industry. the producer surplus if the industry is a monopoly that engages in perfect price discrimination. Does a deadweight loss exist if the industry is a monopoly that ..
Why does Caterpillar as well as your parents have different opinions about the value of the dollar.
q1. monopoly. please respond to the following.imagine monopolizing a service or product of your choice. discuss explain
Explain the “objective theory of jurisdiction.” How does it apply to an organization doing business within a foreign country?
Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and sale of a new type of kryptonite-powered lawnmowers. Lawnman has a somewhat older plant and requires a variable cost of $150 per lawnmower; What is the break-even quanti..
Prepare a balance sheet for Alaskan Strawberry Corp. as of December 31, 2016, based on the following information: cash = $206,000; patents and copyrights = $860,000; accounts payable = $283,000; accounts receivable = $266,000; tangible net fixed asse..
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