Compute the respective net cash flows and cumulative cash balances for the months indicated on the following cash budget for six

Answer:

The ratio of callers on hold for more than 2.8 minutes is 0.3679

Explanation:

μ = 2.8, λ = 1/2.8,

Using the exponential distribution:

P(x>k) = exp(-λk)

          = exp(-2.8/2.8)

          = 0.3679

Thus, the fraction of callers who are placed on hold for over 2.8 minutes is 0.3679

Answer:

The entrance fee is charged per person, while the purchase of souvenirs is applicable collectively

Explanation:

According to the details mentioned in the question, children pay a discounted rate for tickets, which indicates that the tickets are priced individually. Conversely, souvenirs have a uniform price for groups since they can be shared among members, unlike the individual tickets.

Information Provided:

Yearly Demand (D) = 200,000 × 12 = 2,400,000 units

Ordering Cost (S) = $500 each order

Carrying Cost (H) = 20% of the Unit Price = $10 × 20% = $2

Cost per Unit = $10

Calculations:

1) Optimal Order Quantity =

Optimal Order Quantity =

2)

Annual Holding Expense = (34,641 / 2) × 2

Annual Holding Expense = $34,641

3) Orders Each Year = Yearly Demand / Optimal Order Quantity

Orders Each Year = 2,400,000 / 34,641

Orders Each Year = 69.2820646

Orders Each Year = 69 (Approximately)

4) Yearly Transportation Variable Cost = Cost per Unit × Yearly Demand

Yearly Transportation Variable Cost = $0.10 × 2,400,000

Yearly Transportation Variable Cost = $240,000

5) Yearly Clerical Expense = Orders Each Year × Cost Each Order

Yearly Clerical Expense = 69.282 × $500

Yearly Clerical Expense = $34,641

Answer:

  a) 120 skiers daily

  b) 6.25% rise in revenue

Explanation:

a) Assuming each skier stays for an average of 10 days, the daily turnover corresponds to 1/10 of the total skiers, which results in 1200/10 = 120 skiers daily.

__

b) For a duration of n days, the average expenditure for a skier is...

  50 +(n-1)30 = 20 +30n

and the average daily spending calculates to...

  (20 +30n)/n = (20/n) +30

Thus, for a 10-day visit, the average skiier's restaurant spending is...

  20/10 +30 = 32.... each day

Similarly, for a stay of 5 days, the average skier's expense becomes...

  20/5 +30 = 34.... each day

The anticipated change in restaurant revenue is...

  (34 -32)/32 × 100% = 2/32 × 100% = 6.25%

Restaurant revenues are projected to increase by 6.25% from the previous year.

Response:

The correct choice is option "D": It is likely that the fees imposed by a bank will exceed the interest offered on a teenager’s savings account during their initial saving period.

Clarification:

Financial institutions often impose elevated fees on savings accounts for teenagers since they lack a credit history. This can make them appear to be riskier financially, particularly concerning overdrafts. Consequently, banks generally offer lower interest rates on these accounts along with certain limitations that one should consider before selecting a bank for account opening.