A manufacturer of lawn care equipment has introduced a new product. The anticipated demand is normally distributed with a mean of μ = 100 and a standard deviation of σ = 50. Each unit costs $75 to manufacture and the introductory price is to be $125 to achieve this level of sales. Any unsold units at the end of the season are unlikely to be very valuable and will be disposed of in a fire sale for $25 each. It costs $10 to hold a unit in inventory for the entire season.
A.) What is the cost of overstocking (Co) ?
B.) What is the cost of understocking (Cu) ?
C.) What is the optimal cycle service level?
D.) How many units should be manufactured for sale?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A manufacturer of lawn care equipment has introduced a new product. The anticipated demand is normally distributed with a mean of μ = 100 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
He Scott family and the Cox family each used their sprinklers last summer. The water output rate for the Scott family's sprinkler was 35L per hour. The water output rate for the Cox family's sprinkler was 25L per hour.
Answers (1)
Choose a product or service that you connect with as a consumer. in a well-researched essay, explain how the company has used the consumer decision process model
Answers (1)
A corporation issued 100 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. the entry to record this transaction will include
Answers (1)
The burndown chart is a Scrum created artifact that provides a list of features prioritized by business value. True False
Answers (1)
Assume you have two investment opportunities that return the following cash flows: Year 1 Year 2 Year 3 Opportunity A $50,000 $50,000 $50,000 Opportunity B $150,000 Assume the opportunity cost rate is positive and the initial cost of the two
Answers (1)
New Questions in Business
Do you think I could ever start a band?
Answers (2)
g. Kings Donut Inc common stock sells for $39.86 a share at a market rate of return of 9.5%. The company just paid its annual dividend of $1.20. What is the rate of growth of its dividend? Assume stock is in equilibrium.
Answers (1)
Jason Jewelers reported the following in its statement of cash flows: Net cash provided by operating activities $140,000 Net cash provided by investing activities 120,000 Net cash used by financing activities 150,000.
Answers (1)
Evan Company reports net income of $140,000 each year and declares an annual cash dividend of $50,000. The company holds net assets of $1,200,000 on January 1, 2017.
Answers (1)
Those who believe that regulations on business and industry are too numerous and too complex are most likely to favor the policy of
Answers (1)