Which means any firm selling steel must pay shipping costs

Reference no: EM13232905

Your firm usually uses about 200 to 300 tons of steel per year. last year, you purchased 100 tons more steel than needed (at a price of $200 per ton). In the meantime, the price of steel jumped to $250 per ton delivered (which means that any firm selling the steel must pay any shipping costs) and the price has since stabilized at that price. The cost of shipping steel to the nearest buyer would be $20 per ton. In the meantime, a business next door just went bankrupt and the bank is offering a special deal where you can buy another 100 tons of steel for $180 per ton. Assume that the interest rate is 0%. Which is correct?
a. Sell your 100 tons at the going market price of $250 and make profit of $30 per ton ($50 less $20 cost of shipping)
b. Buy 100 tons next door at $180 and resell at a price of $250 less $20 shipping, for a net profit of $50 per ton
c. Hold onto your 100 tons and wait until it is needed for production
d. Buy the 100 tons next door at $180 and hold onto it until it is needed for production

Reference no: EM13232905

Questions Cloud

Given a scanner of double values : public double[] stats(Scanner scanner) Given a Scanner of double values, return an array of capacity three that has the maximum value in the Scanner as the value in result[0]

What is the probability of completing the project in 8 : Assume you have a Normal distribution representing the likelihood of completion times. The mean of this distribution is 10, and the standard deviation is 3. The probability of completing the project in 8 or fewer days is the same as the probabilit..

Explain when a bank loan is repaid the supply of money : Assume Company X deposits $100,000 in cash in Commercial Bank A. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, Bank A, by itself, can initially increase the money supply by a maximum of

Define the anatomy and physiology : At Southern Oregon University, Dr Christine Oswald works as a Physiologist. She studies the Anatomy and Physiology of small mammals

Which means any firm selling steel must pay shipping costs : The cost of shipping steel to the nearest buyer would be $20 per ton. In the meantime, a business next door just went bankrupt and the bank is offering a special deal where you can buy another 100 tons of steel for $180 per ton. Assume that the in..

Return true if sum of all array elements greater than sum : public boolean sumGreaterThan(double[] array, double sum) Given a filled array of double array elements, return true if the sum of all array elements is greater than sum. The array may be empty.

Find out the concentration of the stock solution : How do the units mol/L and ppm compare? You will be given a 100.5 ppm iron stock solution (the iron is ferrous ammonium sulfate hexahydrate, (NH4)2Fe(SO4)2 x 6H2O. Report its molecualr weight in g/mol, and determine the concentration of the stock ..

How the situation would influence the short-run effectivenes : In addition to depending on disposable income, suppose household consumption were also a function of the interest rate. In particular, assume that households consume more (i.e., save less) when the interest rate falls. Assume prices are fixed in t..

Define what is the probability of observing the dominant : Consider the case of 10 oscillators and eight quanta of energy. Determine the dominant configuration of energy for this system by identifying energy configurations and calculating the corresponding weights. What is the probability of observing the..

User Account

All Pages