If a division manager's compensation is based upon the division's net income, the manager may decide to meet the net income targets by increasing production when using:
A) variable costing, in order to increase net income.
B) variable costing, in order to decrease net income.
C) absorption costing, in order to increase net income.
D) absorption costing, in order to decrease net income.

The implied utilization of the second resource is 8.216%.

The total processing time for one loan is 580 + 52 = 632 seconds. The second resource has only 1 worker, which means it can process 1 loan at a time.

The demand occurs at the rate of 0.78 Loans per minute, which is equivalent to 0.013 Loans per second.

Therefore, the implied utilization of the second resource is:
Utilization = (Processing time per loan x Demand rate) / Number of workers

Utilization = (632 seconds x 0.013 Loans per second) / 1 worker
Utilization = 8.216%

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a. The mix of the two media should be 25 TV spots and 10 newspaper ads to stay within the budget of $100,000 and to obtain maximum exposure.

A newspaper is a periodical publication that contains news on current events, opinion articles, features and advertising. Newspapers are typically published daily or weekly, and they may be distributed through the mail, in stores, or online. Newspapers typically include stories related to world news, politics, business, sports, entertainment, and more. They often include photographs and illustrations, as well as detailed descriptions of local events.

b. The maximum exposure with this mix is 850,000 potential customers (35,000 x 25 TV spots + 20,000 x 10 newspaper ads).

c. If Breem decided to reduce the budget by $10,000, the mix of the two media should be adjusted to 20 TV spots and 8 newspaper ads. This would result in a total exposure of 680,000 potential customers (35,000 x 20 TV spots + 20,000 x 8 newspaper ads).

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The total fixed cost per unit of production, when Thornton produces 3,000units  is $101 per unit, If he produces 3,500 units $94.86 per unit,  If he produces 4,000 units the  total fixed cost per unit of production will be $90.75 per unit.

To determine the total fixed cost per unit of production, we need to divide the total annual fixed costs by the number of units produced.

If Thornton produces 3,000 units, the total fixed cost per unit would be:

($65,000 + $170,000 + $60,000 + $12,000) / 3,000 = $101 per unit

If Thornton produces 3,500 units, the total fixed cost per unit would be:

($65,000 + $170,000 + $60,000 + $12,000) / 3,500 = $94.86 per unit

If Thornton produces 4,000 units, the total fixed cost per unit would be:

($65,000 + $170,000 + $60,000 + $12,000) / 4,000 = $90.75 per unit

Fixed costs do not change with the level of production. Instead, they remain constant regardless of the number of units produced. As such, the total fixed cost per unit of production decreases as production levels increase.

It is important to note that while fixed costs remain constant, the total cost per unit of production will vary depending on the level of production due to variable costs (such as materials, labor, and overhead costs) that are incurred as production levels change. Therefore, it is important for companies to accurately analyze their costs to determine the most cost-effective level of production.

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If the government were to reduce spending on the school lunch program, it would be enacting a contractionary fiscal policy. This is because contractionary fiscal policy involves decreasing government spending and increasing taxes to reduce inflation and slow down economic growth.

By reducing spending on the school lunch program, the government would be cutting back on its overall spending and making less money available to schools for providing nutritious meals to students. This could potentially lead to lower overall economic activity and slow down growth in the economy.

In contrast, expansionary fiscal policy involves increasing government spending and decreasing taxes to stimulate economic growth and combat recession. This policy is typically used during times of economic downturn to encourage consumer spending and investment.

Expansionary monetary policy involves increasing the money supply in the economy to encourage lending and spending. This is typically done through actions such as lowering interest rates or increasing the amount of money in circulation.

Overall, reducing spending on the school lunch program would be an example of contractionary fiscal policy as it involves decreasing government spending and could potentially slow down economic growth.

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It is true that Business Analysts (BAs) and solution providers face challenges when considering a good end-user experience. The primary goal of a BA is to analyze the needs and requirements of the business and translate them into feasible solutions. Solution providers are responsible for developing and delivering those solutions to the end users.

One challenge BAs and solution providers face is understanding the diverse needs of the end users. This involves considering factors such as demographics, technical skills, and accessibility requirements. To address this challenge, they can conduct user research and gather feedback through surveys, interviews, and usability tests.

Another challenge is balancing functionality with usability. While it is essential to provide feature-rich solutions, it is equally important to ensure that the solutions are easy to use and navigate. BAs and solution providers can achieve this balance by prioritizing features based on user needs, following best practices in user interface design, and collaborating closely with the development team.

Furthermore, the rapidly evolving technological landscape also poses a challenge. BAs and solution providers must stay updated on the latest trends, tools, and techniques to deliver solutions that are compatible with current technologies and provide a seamless user experience across multiple devices and platforms.

In conclusion, BAs and solution providers must prioritize a good end-user experience to ensure successful solution adoption and user satisfaction. They can achieve this by understanding diverse user needs, balancing functionality with usability, and staying informed of the latest technological advancements.

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The average score for each variable in a dependent-samples t test is the- D. Mean.

In order to compare the sample means from two related groups, the dependent samples t-test is performed. This implies that the same individuals who provided the ratings for the two groups under comparison.

The mathematical average of a group of two or more data values is referred to as a mean. Average is often defined as mean or arithmetic mean. Mean is only a way of summarizing the sample average.

Hence, option d. Mean is the right choice.

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In a competitive market, firms don't have excess capacity in the long run because there are numerous firms and economies of scale.

 
Following are the reasons of competitive firms having excess capacity in the long run:

1. In a competitive market, there are numerous firms producing similar products, which leads to intense competition. As a result, firms strive to operate at their most efficient level to minimize costs and maximize profits.

2. In the long run, firms in a competitive market can adjust their production levels according to market demand. If there is excess capacity, firms will decrease their production levels to reduce costs and avoid waste.

3. When firms have excess capacity, they are not utilizing their resources efficiently. In a competitive market, firms that operate inefficiently are likely to be outperformed by their more efficient competitors, forcing them to either improve their operations or exit the market.

4. Firms in a competitive market continuously strive to achieve economies of scale by increasing their production levels. This helps them reduce their average costs and stay competitive. In the long run, this process eliminates excess capacity as firms produce at the most efficient level.

In conclusion, firms in a competitive market don't have excess capacity in the long run because they strive to minimize costs and maximize profits by operating efficiently, adjusting production levels according to demand, and achieving economies of scale. This helps them stay competitive and avoid being outperformed by their rivals.

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Using the midpoint method, the price elasticity of demand between points B and C is approximately -0.17.

To calculate the price elasticity of demand between points B and C using the midpoint method, follow these steps:

Step 1: Identify the prices and quantities at points B and C.
Point B: Price = $32, Quantity = 9,900
Point C: Price = $34, Quantity = 9,800

Step 2: Calculate the percentage change in quantity demanded.
Percentage change in quantity = (Change in Quantity / Midpoint of Quantities) * 100
Change in Quantity = 9,800 - 9,900 = -100
Midpoint of Quantities = (9,900 + 9,800) / 2 = 9,850

Percentage change in quantity = (-100 / 9,850) * 100 ≈ -1.02%

Step 3: Calculate the percentage change in price.
Percentage change in price = (Change in Price / Midpoint of Prices) * 100
Change in Price = $34 - $32 = $2
Midpoint of Prices = ($32 + $34) / 2 = $33

Percentage change in price = (2 / 33) * 100 ≈ 6.06%

Step 4: Calculate the price elasticity of demand.
Price elasticity of demand = (Percentage change in quantity) / (Percentage change in price)
Price elasticity of demand = (-1.02%) / (6.06%) ≈ -0.17

Therefore, the price elasticity of demand between points B and C using the midpoint method is approximately -0.17.

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The acquisition costs of property, plant, and equipment refer to the expenses incurred by a company to acquire or purchase these long-term assets. These costs are vital for a business as they help determine the value of the asset and its depreciation over time.

However, it is essential to note that the acquisition costs of property, plant, and equipment do not include maintenance costs during the first 30 days of use. These costs are considered separate from the initial purchase and are usually incurred as part of the ongoing operation and maintenance of the asset. Moreover, the acquisition costs do not include legal fees, delivery charges, installation, and any applicable sales tax.

These expenses are necessary to bring the asset to its desired condition and location for use, but they are not considered part of the acquisition costs. Therefore, it is crucial for businesses to understand the different types of costs associated with acquiring and maintaining long-term assets to ensure accurate financial reporting and planning.

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If brown enterprises' bonds currently sells for $1,025 and they have a 9-year maturity, an annual coupon of $80, and a par value of $1,000, then their yield to maturity would be 7.53%.

To calculate their yield to maturity, we need to consider the current selling price, maturity period, annual coupon, and par value.

1. Current selling price (P) = $1,025
2. Maturity period (n) = 9 years
3. Annual coupon payment (C) = $80
4. Par value (F) = $1,000

Now, we can use these values to find the yield to maturity (YTM) using the following formula:

P = (C * (1 - (1 + YTM)^(-n))) / YTM + (F * (1 + YTM)^(-n))

By plugging in the values:

$1,025 = ($80 * (1 - (1 + YTM)^(-9))) / YTM + ($1,000 * (1 + YTM)^(-9))

This equation can be solved using a financial calculator, Excel, or trial-and-error. After solving for YTM, you'll get the yield to maturity as a percentage. In this case, the yield to maturity for Brown Enterprises' bonds is approximately 7.53%.

So, the yield to maturity for Brown Enterprises' bonds, given a current selling price of $1,025, a 9-year maturity, an annual coupon of $80, and a par value of $1,000, is approximately 7.53%.

Hence, the answer is 7.53%.

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The correct answer is a. subordinate count. A first-line manager is responsible for overseeing a group of employees, also known as subordinates, who directly carry out the daily operations of a company.

In Tiffany's case, she is a first-line manager at an electronics retailer and her subordinate count would refer to the number of employees she supervises within her team or department. The term "workforce" refers to the entire group of employees within the company, while "underlings" is a more informal term that is sometimes used to refer to subordinates. "Span of management" refers to the number of subordinates that a manager is responsible for overseeing, and it can vary depending on the organization's structure and hierarchy.

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The given statement “Composition Ratios are useful in assessing the long-term solvency or liquidity of a firm.” is true because Composition Ratios are useful in assessing a firm's long-term solvency or liquidity.

Composite ratios help evaluate a company's financial structure, debt levels, and ability to meet its long-term obligations, contributing to understanding long-term solvency and liquidity.

Thise ratios can help you compare the financial performance of companies in the same industry or sector, as well as uncover trends and potential difficulties in a company's financial statements. However, while assessing the findings of these ratios, it is critical to utilise them in conjunction with other financial measures and to take into account aspects such as industry norms and economic situations.

Investors, creditors, and analysts usually use composite ratios to analyse a company's capacity to satisfy its financial obligations and create profits. The DuPont analysis, which breaks down a company's return on equity into its component elements, and the Z-score, which gauges a company's chance of bankruptcy, are two typical composite ratios.

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If an additional employee adds more output than the previous employee hired, a company is experiencing "increasing marginal returns " (Option d).

Increasing marginal returns, also known as increasing returns to scale, occur when adding one more unit of input (such as labor) results in a greater increase in output than the previous unit of input. This means that each additional worker hired is more productive than the previous worker hired, leading to an overall increase in production efficiency and output.

In contrast, decreasing marginal returns occur when adding one more unit of input results in a smaller increase in output than the previous unit of input. This means that each additional worker hired is less productive than the previous worker hired, leading to a decrease in production efficiency and output.

Diminishing marginal returns occur when adding one more unit of input results in a smaller increase in output than the previous unit of input, similar to decreasing marginal returns. However, this term is typically used to describe a specific scenario where the marginal product of labor starts to decline after a certain point of input, rather than a general trend of decreasing productivity.

Overall, if an additional employee adds more output than the previous employee hired, a company is experiencing increasing marginal returns. Option d is answer.

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In general, a new candle business should aim for a margin of 25% to 50%. The majority of consumers (77%) spend less than $200 a year on candles. According to the poll, 64% of consumers have given candles as gifts. Wide-mouthed jarred candles are by far the best-selling candles.

There are many different jar types available, and glass is a fantastic option because it is temperature resistant. Other containers may become quite hot if not made carefully. In 2023, the Candles Segment will generate US$312.70m in revenue. The market is anticipated to expand by 4.81% yearly (CAGR 2023-2027). When compared globally, the United States generates the largest revenue ($2,199.00m in 2023).

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According to the Big Mac Index, the implied PPP exchange rate is Mexican peso 8.50/$1 but the actual exchange rate is peso 10.80/$1. Thus, at current exchange rates the peso appears to be overvalued by approximately 27%. The correct answer is option b.

The Big Mac Index is a tool used to measure the purchasing power parity (PPP) between different countries' currencies based on the prices of Big Mac hamburgers.

According to the information given, the implied PPP exchange rate is 8.50 Mexican pesos per U.S. dollar. This means that, based on the price of Big Macs, the peso should be worth 8.50 for every 1 USD. However, the actual exchange rate is 10.80 Mexican pesos per U.S. dollar, which is higher than the implied PPP exchange rate.

Since the actual exchange rate is higher than the implied PPP exchange rate, this indicates that the peso is overvalued. In other words, the peso appears to be more expensive than it should be based on the price of Big Macs.

Using the formula for overvaluation, we can calculate that the peso is overvalued by approximately 27%. Therefore, the correct answer is option (B) overvalued; approximately 27%.

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In an economy with two firms and two consumers where both firms are polluters, the marginal savings function (ms) for firm one as a function of the level of emissions (e) represents the additional savings that firm one can generate by reducing its emissions by one unit.

The marginal savings function will depend on the marginal cost of reducing emissions, which will vary depending on the technology and production process used by the firm.

If we assume that firm one has a higher marginal cost of reducing emissions than firm two, then its marginal savings function will be steeper than that of firm two. This means that firm one will have to incur a higher cost to reduce emissions by one unit, and therefore the marginal savings will be higher for each additional unit of emissions reduction.

To calculate the marginal savings function for firm one, we can use the following formula:

ms(e) = TC(e) - TC(e-1)

Where TC is the total cost of production, which includes the cost of emissions reduction. As firm one reduces its emissions, its total cost will decrease, and the marginal savings will increase.

In summary, the marginal savings function for firm one in an economy with two firms and two consumers where both firms are polluters will depend on the marginal cost of emissions reduction and will be steeper than that of firm two if its marginal cost is higher.
Hi! In the context of an economy with two firms and two consumers, where both firms are polluters, the marginal savings function (MS) for Firm 1 as a function of the level of emissions (e) can be represented as MS₁(e₁). This function shows the additional savings Firm 1 achieves by emitting an additional unit of pollution, taking into account the impact on the environment and the costs associated with pollution control. The specific form of the MS₁(e₁) function will depend on the characteristics of the firm and the production technology it employs.

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Typically, all of the following information is included on a packaging label except "what risks are associated with the product."

Labels usually indicate where the product was made, what color the product is, and who made the product. However, the risks associated with the product are not typically found on the packaging label. Instead, they may be found in a separate document or instruction manual accompanying the product.

Packaging labels usually include information such as the name of the product, the manufacturer or distributor of the product, where the product was made, ingredients or materials used, usage instructions, warnings and precautions, and any necessary regulatory or certification information. This information is intended to help consumers make informed decisions about the product and use it safely and effective

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As a result, the high-low technique cannot be used since it implies a fixed cost that is negative. The negative fixed cost indicates that there could be other aspects of the cost outside the mileage that impact it. Therefore, none of the suggested solutions is the right one.

A mixed cost's fixed and variable components are estimated using the high-low technique. We must first determine the highest and lowest activity levels as well as their associated expenses before we can use the high-low technique. The variable cost per unit may then be determined by dividing the difference in total cost by the variation in activity levels.

Highest activity level: April, 90,000 miles, total cost of $260,000

Lowest activity level: February, 50,000 miles, total cost of $160,000

Using these data, we can calculate the variable cost per mile as:

Variable cost per mile = (Total cost at highest level - Total cost at lowest level) / (Highest activity level - Lowest activity level)

Variable cost per mile = ($260,000 - $160,000) / (90,000 miles - 50,000 miles)

Variable cost per mile = $100,000 / 40,000 miles

Variable cost per mile = $2.50 per mile

To calculate the fixed cost, we can use the formula:

Fixed cost = Total cost - (Variable cost per unit x Activity level)

Using the data for either the highest or lowest activity level, we get:

Fixed cost = Total cost - (Variable cost per mile x Activity level)

Fixed cost = $192,000 - ($2.50 per mile x 80,000 miles)

Fixed cost = $192,000 - $200,000

Fixed cost = -$8,000

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An auditor makes the following representations, which are The answer is: b. implicitly implicitly

When issuing an unqualified opinion on a public company's financial statements, an auditor explicitly makes a representation that the financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles (GAAP).

However, the auditor implicitly makes a representation regarding conformity with PCAOB standards and going concern status, as these are required components of an audit in accordance with GAAS (Generally Accepted Auditing Standards). When issuing an unqualified opinion on a public company's financial statements, an auditor makes the following representations explicitly and implicitly: Conformity with PCAOB standards: Explicitly and Going concern status: Implicitly.

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The amount of overhead that a department contributes does not always correspond to the amount of gross profit it produces. A Departmental contribution to overhead is the amount of money it generates that goes towards paying the company's overall overhead expenses.

False. Departmental contribution to overhead is not necessarily the same as gross profit generated by that department. Contribution to overhead refers to the amount of revenue generated by a department that goes towards covering the overhead costs of the entire company. Gross profit, on the other hand, refers to the revenue generated by a department after deducting the cost of goods sold. These two metrics can be different depending on the specific circumstances of a department and its operations.

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The main difference between discretionary spending and mandatory spending is how they are authorized.

Discretionary spending is authorized by the appropriations process of Congress each year and varies from year to year. On the other hand, mandatory spending is authorized by permanent laws and is fixed. This means that mandatory spending is not subject to the annual appropriations process and remains constant unless the law is changed. Therefore, while discretionary spending can be adjusted based on changing priorities, mandatory spending remains constant and is typically used to finance entitlement programs.

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Performs adjusting entries every month, but closes income statements its accounts only at year-end. Balance Sheet for the the company appear to be liquid current year, dated December 31.

1. Prepare an income statement for the year ended

Cash $218,640

10,800 in receivables Supplies 720

Devices 28,800 Less: Equipment depreciation over time: 12,000 Assets in total: $247,960

Equity held by stockholders and liabilities:

2. Prepare a statement of retained earnings for the year ended December 31, current year.Liabilities:

$3,600 in accounts payable

Taxes due on income: 8,400

$12,000 in total liabilities

Investors' equity

$60,000 in capital stock

3. Prepare the company’s balance sheet dated December 31, current year.

$235,960 is the total stockholders' equity.

$247,960 in total obligations and stockholders' equity b. We would need to compare the amount of Green Lawns, Inc.'s current assets to its current liabilities in order to ascertain whether the company is liquid.

Cash$218640

10,800 in receivable supplies the company been profitable in the past.

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The clause is called  a due-on sales clause.(A)

A due-on sales clause is a provision in a mortgage contract that requires the borrower to pay off the loan in full when the property is sold. This clause prevents the buyer from assuming the existing loan on the property.

When the property is sold, the seller must use the proceeds from the sale to pay off the outstanding balance on the loan, and the buyer needs to secure their own financing.

This is in contrast to an assumption clause, which allows the buyer to take over the existing loan. A subordination clause and a prepayment clause are unrelated to the assumption of a loan in the context of property sales.(A)

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After general equilibrium is restored, output is lower and the real interest rate is higher compared with the situation before the shock. Therefore, the answer is D for Part 2, D for Part 3, D for Part 4, and A for Part 5. It is important to note that a temporary supply shock is different from a permanent one, as it does not have a long-term impact on the economy.

A temporary adverse supply shock is most likely to affect the AD curve. In the short run, before general equilibrium is restored, the FE line shifts left and causes output to decline and the real interest rate to rise. After general equilibrium is restored, output is lower and the real interest rate is higher compared with the situation before the shock. Therefore, the answer is D for Part 2, D for Part 3, D for Part 4, and A for Part 5. It is important to note that a temporary supply shock is different from a permanent one, as it does not have a long-term impact on the economy.

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When there is a temporary adverse supply shock, the correct answer for Part 2 is the A. LM curve.

In the short run, before general equilibrium is restored, the FE (Full Employment) line shifts to the left, causing the output to decline and the real interest rate to rise. Therefore, the correct answer for Part 3 is D. left; output to decline and the real interest rate to rise.

After general equilibrium is restored, the output is lower and the real interest rate is higher. Therefore, the correct answer for Part 5 is A. lower; higher. Part 4 is not applicable, as it is asking about the short run before general equilibrium is restored, and Part 6 is already answered in Part 5.

As a result, the economy moves from point A to point B on the IS-LM graph, where output is lower and the real interest rate is higher. This is due to the fact that the decrease in adverse supply shock causes an increase in the price level and a decrease in output, which in turn leads to a decrease in the demand for money and an increase in the real interest rate.

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The length of your project's scope statement defines your project's length. False.A WBS shows hierarchy, with work packages being broken down into smaller sub-packages.

The Ford Pinto is an excellent example of how the triple constraints affect one another. Ultimately, because cost was the driver of the project, easy fixes were dismissed.
The length of your project's critical path defines your project's length.
A WBS (Work Breakdown Structure) shows hierarchy, so the statement "A WBS shows no hierarchy, only work packages" is false.
The Ford Pinto is an excellent example of how the triple constraints affect one another. Ultimately, because cost was the driver of the project, easy fixes were dismissed.

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"Available-to-promise (ATP)" inventory refers to stock levels that a company can promise to have on hand to fill requests from potential customers in the future. Thus, ATP1=20 option (d) is the correct choice.

Inventory levels that a company may promise to have in stock to fill upcoming client requests are referred to as "available-to-promise (ATP)" inventory.

From the given data:

ATP (available to promise) is given as:-

given,

So, ATP is

Therefore, the "Available-to-promise (ATP)" ie ATP1=20 option (d) is the correct choice.

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"Available-to-promise (ATP)" inventory refers to stock levels that a company can promise to have on hand to fill requests from potential customers in the future. Thus, ATP1=20 option (d) is the correct choice.

Inventory levels that a company may promise to have in stock to fill upcoming client requests are referred to as "available-to-promise (ATP)" inventory.

From the given data:

ATP (available to promise) is given as:-

given,

So, ATP is

Therefore, the "Available-to-promise (ATP)" ie ATP1=20 option (d) is the correct choice.

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A needs analysis is concerned with how well job applicants or present employees meet the ksao requirements of the job analysis title, function, including accountability, power, necessary qualifications, and pay.

In order to produce more competent human resources and the appropriate policies and programmes, it is therefore necessary to understand how the organisation works.You list the prerequisites that the candidate must fulfil, such as the necessary training, abilities, and personal traits, using a precise and thorough description.

Consequently, you can find qualified candidates to fill open positions. Second, you can assess each job's relevance to the objectives and strategy of your firm using the analysis's findings. Therefore, you can enhance work processes to combine them and increase their effectiveness. Third, you can illustrate how each role might benefit the business. For instance, you can give particular critical roles greater consideration and spend more money on the personal development of the people who hold those positions.On the other side, in order to support more effective business processes, you might need to eliminate certain non-essential roles.

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According to rule of 70, years to double = 70/growth rate. The grow th rate is 10. The answer is About 7 years option (C).

The interest rate is the sum that the financial institution charges the borrower in addition to the principal amount. Taking into consideration the time value of money, anyone who puts money in a financial institution, such as a bank, also receives additional revenue for the benefit of the beneficiary, known as interest.

An interest rate is a fee that a lender assesses to a borrower; it is calculated as a proportion of the the principal, or the amount being borrowed. Usually, the fascination rate on a loan is expressed using an annualized rate of interest, or APR. (APR). Interest may be assessed by a bank or credit union on the profits from investments or certificate of deposit. (CD).

According to rule of 70, years to double = 70/growth rate.

Grow th rate = 10

= 70/10

= 7

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Answer:

The opportunity cost of earning an advanced college degree is that You will earn more income during your career and some fields require a professional degree before you can begin working.

Explanation:

Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.  Opportunity cost is the forgone benefit that would have been derived from an option not chosen.

In this case, it would be the benefit of earning an advanced college degree. It is something that may not be achievable yet aspirational to many, due to financial costs, personal situations, accessibility, etc., The cost of forgoing this opportunity would be either the ability to earn more income during your career or not having the opportunity to work in a desired field or advance significantly in a field due to lack of education.

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The corresponding cross rate (SF/$) for the given exchange rates in London and New York is approximately 0.2222 Swiss Francs per US Dollar. Suppose in London the exchange rate is £/$ = 1.8, while in New York the exchange rate is £/SF = 0.4. To find the corresponding cross rate (SF/$), you can follow these steps:

Step 1: Identify the two exchange rates given - £/$ = 1.8 and £/SF = 0.4.

Step 2: Since we want to find the cross rate (SF/$), we need to eliminate the £ (Pound) from the equation. To do this, we'll divide the second exchange rate by the first exchange rate.

Step 3: Calculate the cross rate by dividing the £/SF rate by the £/$ rate: (0.4 SF/£) / (1.8 $/£).

Step 4: Simplify the expression by canceling out the £ in both the numerator and the denominator. This results in (0.4 SF) / (1.8 $).

Step 5: Now, divide the numbers to find the cross rate: 0.4 ÷ 1.8 ≈ 0.2222 SF/$.

To know more about exchange rates refer here:

https://brainly.com/question/30461560#

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