Answer:
Option d (all of the above are advantages) is the correct option.
Explanation:
It transfers or sends the burden back to the manufacturer for an acceptable, satisfactory, or suitable product. The output design becomes result-oriented as well as for user-oriented, having to leave the vendor with either the determination about how to end up making the much more appropriate platform.So that all the given statements are true.
Costs to rent a vehicle for a short period of time after an auto dealer fails to deliver a purchased vehicle would be
Answer:
Incidental damages.
Explanation:
Incidental damages can be defined as any charges that an individual may charge another for a breach of a contractual arrangement between the two parties or for defaulting in remittance.
In this scenario, costs to rent a vehicle for a short period of time after an auto dealer fails to deliver a purchased vehicle would be incidental damages.
purchased a new van on January 1, 2019. The van cost $40,000 with an estimated life of 5 years and $10,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance in the accumulated depreciation for 2020
Answer:
Accumulated depreciation= $19,200
Explanation:
Giving the following information:
The van cost $40,000 with an estimated life of 5 years and $10,000 salvage value at the end of its useful life.
To calculate the depreciation expense for each year, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2019:
Annual depreciation= 2*[(40,000 - 10,000)/5]= 12,000
2020:
Annual depreciation= 2*[(30,000 - 12,000)/5]= 7,200
Accumulated depreciation= 12,000 + 7,200= $19,200
Flag Dietterich Electronics wants its shareholders to earn a return of 7% on their investment in the company. At what price would the stock need to be priced today if Dietterich Electronics had a
a. $0.20 constant annual dividend foreverb. $1.00 constant annual dividend foreverc. $1.60 constant annual dividend foreverd. $2.90 constant annual dividend forever
Answer:
a. The price at which the stock would need to be priced today is approximately $2.86.
b. The price at which the stock would need to be priced today is approximately $14.29.
c. The price at which the stock would need to be priced today is approximately $22.86.
d. The price at which the stock would need to be priced today is approximately $41.43.
Explanation:
Since the annual dividend is constant in all cases, the price at which the stock need to be priced today can be calculated using the following formula:
P = d / r ……………………………………… (1)
Where;
P = current price per share or price at which the stock would need to be priced today = ?
d = Constant annual dividend forever = To be given
r = required return = 7%, or 0.07
Using the formula above, we have:
a. $0.20 constant annual dividend forever
Substituting the values into equation (1), we have:
P = $0.20 / 0.07 = $2.85714285714286
Approximating to 2 decimal places, we have:
P = $2.86
Therefore, the price at which the stock would need to be priced today is approximately $1.82.
b. $1.00 constant annual dividend forever
Substituting the values into equation (1), we have:
P = $1.00 / 0.07 = $14.2857142857143
Approximating to 2 decimal places, we have:
P = $14.29
Therefore, the price at which the stock would need to be priced today is approximately $14.29.
c. $1.60 constant annual dividend forever
Substituting the values into equation (1), we have:
P = $1.60 / 0.07 = $22.8571428571429
Approximating to 2 decimal places, we have:
P = $22.86
Therefore, the price at which the stock would need to be priced today is approximately $22.86.
d. $2.90 constant annual dividend forever
Substituting the values into equation (1), we have:
P = $2.90 / 0.07 = $41.4285714285714
Approximating to 2 decimal places, we have:
P = $41.43
Therefore, the price at which the stock would need to be priced today is approximately $41.43.
Lance, a hacker, stole 15,000 credit card numbers and sold them on the black market, making millions. Police caught Lance, and two legal actions followed, one civil and one criminal. Who will be responsible for bringing the civil case
Answer:
The owner of the credit card that were hacked
Explanation:
Civil cases are brought against defendants that carried out an action that results in injury or loss to an individual or private party.
The plaintiffs that bring such allegations to a court of law are not government or law enforcement but rather they make the case in their own interest.
The punishment nos usually repayment for loss incurred and damages.
Criminal cases on the other hand are usually carried out by out by state prosecutors or representative of the government. The punishment is usually jail time.
A state imposes a minimum wage of $10 per hour when the equilibrium price is $7. The resulting labor surplus is greater in the long run than in the short run: long-run unemployment (LR) is greater than short-run unemployment (SR). Why does this occur
Answer:
With a minimum wage that is higher than the equilibrium price, firms, in the short-run, would still have to hire many workers in order to meet their production obligations and customer demand.
However, because hiring has now become more expensive than it should be, firms will start to invest more in capital, and to look for ways to replace workers with capital investments, for example, machinery.
This will in turn reduce the demand for labor even more in the long-run, leading to a higher labor supply surplus in the long-run than in the short-run.
A 10-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 6%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $940. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)
Answer:
a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $940.
the yield to maturity of the bond is:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2] = {60 + [(1,000 - 940)/10]} / [(1,000 + 940)/2] = 66 / 970 = 0.06804 = 6.8%
the bond equivalent yield is:
BEY = 2 x [√(1 + YTM) - 1] = 2 x [(√1 + YTM) - 1] = 2 x [√1.068 - 1] = 2 x [(√1 + YTM) - 1] = 0.06688 = 6.69%
3D printers can use ________ electricity to produce a part than would have been used to produce the same part by nonadditive manufacturing.
Answer:
100 times more
Explanation:
3D printing can simply be define as a way of/for producing a three dimensional digital model, mostly and usually by laying down many successive thin layers of a material. 3D printing is the commonly known for the correct manufacturing term of additive manufacturing.
Electricity is known to be a type/form of energy determine/cause by the movement of electrons.
McConnell Corporation has bonds on the market with 13.5 years to maturity, a YTM of 7.4 percent, a par value of $1,000, and a current price of $1,059. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Coupon rate = 8.10% stated in annual terms
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Let the semi annual coupon payment be x
Coupon Payment (C) = x
Total periods (n) = 13.5 * 2 = 27
r or YTM = 0.074 * 6/12 = 0.037 or 3.7%
The formula to calculate the price of the bonds today is attached.
Plugging in the available values, we can calculate the coupon payment to be,
1059 = x * [( 1 - (1+0.037)^-27) / 0.037] + 1000 / (1+0.037)^27
1059 = x * 16.89323812 + 374.9501896
1059 - 374.9501896 = x * 16.89323812
(1059 - 374.9501896) / 16.89323812 = x
x = $40.49252166 rounded off to $40.49
As the semi annual coupon payment is 40.49, the annual payment will be = 40.49252166 * 2 = $80.98504332
As coupon payment is a percentage of the face value of the bond, the annual coupon rate on bond will be = 80.98504332 / 1000 = 8.0985% rounded off to 8.10%
True or False: It is more economically efficient in the market for pollution for the government to distribute the tradable permits than to auction them off.
Answer:
False
Explanation:
When there is an economic efficiency in the market with respect to the pollution than it is not relevant. Here the difference would occurs when the government is able to make the money in the case when the auction permits off as permitting allows to cut the taxes that ultimately reduced the deadweight loss arise from taxation
Also there is an extra deadweight loss arise in the case when the company use resources for lobby the extra permits
Therefore the given statement is false
A manufacturer has one hundred memory chips in stock, 4% of which are likely to be defective. A random sample of 20 chips is selected and shipped to a factory that assembles laptops. Let X denote the number of computers that are receive faulty memory chips. Find E(X).
Answer:
E(x) = 0.8
Explanation:
Given:
Selected chips = 20
Defective rate = 4%
Number of fault chips computer = x
Find:
Number of fault chips computer
Computation:
Number of fault chips computer (x) = Selected chips x Defective rate
Number of fault chips computer (x) = 20 x 4%
Number of fault chips computer (x) = 0.8
E(x) = 0.8
You plan to purchase a $330,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 8.00 percent, or a 20-year mortgage with a rate of 7.00 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid
Answer:
30 year mortgage
down payment = $330,000 x 20% = $66,000
debt = $330,000 - $66,000 = $264,000
monthly payment = $264,000 / 136.2834 (PV annuity factor, 360 periods, 0.667%) = $1,937.14
total payments = $1,937.14 x 360 = $697,370.40
total interest paid = $697,370.40 - $264,000 = $433,370.40
20 year mortgage
down payment = $330,000 x 20% = $66,000
debt = $330,000 - $66,000 = $264,000
monthly payment = $264,000 / 128.9825 (PV annuity factor, 240 periods, 0.583%) = $2,046.79
total payments = $2,046.79 x 240 = $491,229.60
total interest paid = $491,229.60 - $264,000 = $227,229.60
the 20 year mortgage charges $433,370.40 - $227,229.60 = $206,140.80 less interest
Keidis Industries will pay a dividend of $4.95, $6.05, and $7.25 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $67.00 per share. The return on similar stocks is 10.8 percent. What is the current stock price?
Answer:
Current stock price = $59.18
Explanation:
Current stock price = Present value of first three value+ Present value of terminal value
Current stock price = Dividend 1/(1+r)^1 + Dividend 2/(1+r)^2 + Dividend 3/(1+r)^3 + Terminal Value/(1+r)^4
Current stock price = $4.95/(1.108)+$6.05/(1.108)^2+$7.25/(1.108)^3 + $67/(1.108)^4
Current stock price = $4.46751 + $4.928059 + $5.329896 + $44.45450
Current stock price = $59.179965
Current stock price = $59.18
A few months ago, an investor went long a forward contract to purchase EUR 10,000 at a forward price of USD 1.25 per EUR. The contract still has 9 months to maturity. The current 9-month forward price of Euro is USD 1.20 per EUR, and the 9-month interest rate for USD is 3% per annum (continuously compounded). What is the present value of this forward contract to this investor
Answer:
488.88
Explanation:
In finance, a forward contract or simply a forward is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed on at the time of conclusion of the contract, making it a type of derivative instrument.
DATA
Interest rate = e = 3%
time = 9 months
F1 = 1,2
F0 = 1.25
euro to purchase = 10,000
The present value of this forward contract to this investor = (F1 - F0) x Euro to be purchased x e-r x t
The present value of this forward contract to this investor = USD (1.20 - 1.25) per Euro x 10,000 x 3% x 9/12
The present value of this forward contract to this investor = USD (1.20 - 1.25) x 10,000 x 3% x 9/12
The present value of this forward contract to this investor = - USD 488.88
Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system: Overhead costs: Wages and salaries $ 162,000 Other expenses 61,000 Total $ 223,000 Distribution of resource consumption: Activity Cost Pools Making Bouquets Delivery Other Total Wages and salaries 45% 25% 30% 100% Other expenses 30% 45% 25% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Activity Making bouquets 140,308 bouquets Delivery 12,700 deliveries What would be the total overhead cost per delivery according to the activity based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent.)
Answer:
$5.35 per delivery
Explanation:
Overhead costs:
Wages and salaries $162,000
Other expenses $61,000
Total $223,000
Activity Cost Pools Wages and salaries Other expenses
Making Bouquets 45% 30%
Delivery 25% 45%
Other 30% 25%
Total 100% 100%
Activity Cost Pool Activity
Making bouquets 140,308 bouquets
Delivery 12,700 deliveries
total overhead costs assigned to delivery:
Wages and salaries $162,000 x 25% = $40,500
Other expenses $61,000 x 45% = $27,450
total = $67,950
cost per delivery = $67,950 / 12,700 deliveries = $5.35 per delivery
The overall activity rate for the deliveries activity cost pool $5.35 per delivery .
Overhead costs:Wages and salaries $162,000
Other expenses $61,000
Total= $223,000
Activity Cost Pools Wages and salaries Other expenses Making Bouquets 45% 30% Delivery 25% 45% Other 30% 25%
Total 100% 100%
Activity Cost Pool Activity:
Making bouquets 140,308 bouquets Delivery 12,700 deliveries
Total overhead costs assigned to delivery:
Wages and salaries $162,000 x 25% = $40,500 Other expenses $61,000 x 45% = $27,450 Total = $67,950
Cost per delivery = $67,950 / 12,700 deliveries
Cost per delivery= $5.35 per delivery
The overall activity rate for the deliveries activity cost pool $5.35 per delivery .
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Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $22,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 2,250 Outstanding checks 1,053 Additionally, a $46 check written and recorded by the company correctly, was recorded by the bank as a $64 deduction. The adjusted cash balance per the bank records should be:
Answer: $23576
Explanation:
The adjusted cash balance per the bank records will be calculated thus:
Bank statement = $22,361
Add: Deposit in transit = $2250
Less: Outstanding checks = ($1053)
Add: Bank error = $64 - $46 = $18
Adjusted cash balance = $23,576
The adjusted cash balance per the bank records should be $23576
This type of CV is custom-made to suit the needs of a specific employer that you are reaching out to:
Answer:
targeted
Explanation:
The full form CV is Curriculum Vitae. It is a Latin term which means course of life. It is a document which is presented to the employer by the job seekers which shows his educational and work experience background.
It is the CV based on which an employer gets to know about the job seeker or his potential employee, about his achievements and interests in life. A CV is first mode of contact or introduction between the employer and the potential employee.
A CV can be custom based so as to suit the targeted job profile and the organization. A job seeker can customize his CV according to the need of the job if he or she possesses those required qualifications and work experience.
During regular economic times in the United States, the maximum length of time a worker can collect unemployment insurance is 26 weeks. During recessions, however, Congress often increases the length of time in which workers can collect benefits. During the recent financial crisis, workers could collect benefits for up to 99 weeks in some states. This system will:
Answer:
the options are missing:
a) encourage people to search longer for a job.
b) provide workers with an adequate safety net.
c) prolong the amount of time a person stays out of work.
d) increase the number of workers looking for work.
e) allow more people to start businesses.
The answer is:
b) provide workers with an adequate safety net. c) prolong the amount of time a person stays out of work.This type of actions can be considered humane and necessary due to certain special circumstances, but it has two effects, one good and one bad:
The good effect is that it provides workers' families with an adequate safety net. I.e. it allows a lot families in need to cover some of their basic necessities which helps them avoid a lot of suffering.
The bad effect is that it encourages people to not search jobs or only accept certain type of jobs (high paying jobs), which increases the amount of time someone is unemployed. If you are in desperate need for a job you will take any job available, but if you can afford to wait, then you will wait until you get a good job.
g you have just taken out a 5 year car loan. The amount of the loan is $20,000 and the interest rate on the loan is 6% per year. What will be the amount of your monthly car loan payments
Answer:
Amount to be paid monthly for the period of 5 years is $446
Explanation:
Here, we want to calculate the amount to pay on the loan per year.
This is a case of a loan amount compounded yearly;
Loan amount = P( 1 + r)^t
r = 6% = 6/100 = 0.06
P is the amount borrowed = $20,000
t is the number of years = 5
So we have ;
A = 20,000( 1 + 0.06)^5
A = 20,000(1.06)^5
A = 26,764.5 which is approximately $26,765
This is the total amount to pay back
The number of months in 5 years is 5 * 12 = 60 months (12 months in a year)
So the amount to payback per month will be;
$26,765/60 = $446.083 which is approximately $446
True or False. Under the allowance method, when a company records bad debt expense at the end of the year, it causes the Net Realizable Value of their accounts receivable to increase.
Answer:
False
Explanation:
According to the allowance method
Net realizable value is
= Gross realizable value - allowance for doubtful debts
As if we record the bad debt expense so it would increased the allowance that reduced the balances of the net realizable value of the account receivable
Hence, the given statement is false
And, the same is to be considered
Which of these is NOT an appropriate descriptive e-mail subject line? Employment Opportunity Week 2 Assignment Assistance ANSWER ME NOW! CPT Renewal Request
Answer:
The Inappropriate Descriptive Email Subject Line is:
ANSWER ME NOW!
Explanation:
This subject line sounds harsh. It is not courteous. It does not convey any message but it is a command that demands obedience. It is not appropriate. In addition, it is very unclear with regard to the matter under discussion. The receiver may not understand the message without reading the body of the email.
Hanson Inc. has the following direct materials standard to manufacture one Zippy: 1.5 pounds per Zippy at $4.00 per pound Last week, 1,700 pounds of materials were purchased and used to make 1,000 Zippies. The materials cost a total of $6,630. 1. How many pounds of materials should Hanson have used to make 1,000 Zippies? a. 1,700 pounds b. 1,500 pounds c. 1,200 pounds d. 1,000 pounds
Answer:
Total standard quantity= 1,500 pounds
Explanation:
Giving the following information:
Standard= 1.5 pounds per Zippy at $4.00 per pound
Units produced= 1,000 units
To calculate the number of pounds required to make 1,000 units, we need to use the following formula:
Total standard quantity= standard unitary quantity*number of units
Total standard quantity= 1.5*1,000
Total standard quantity= 1,500 pounds
Explain the symbiotic relationship between the U.S. economy and American business. Be specific in identifying how one influences the other. 2. Briefly describe the benefit to a company of giving something of value back to the community in which it is located.
Answer:
There will be better brand recognition for social responsibility.
The employees will be motivated as they will be part of business who are considering the community benefits.
There will be increase in sales as the business reputation will increase.
Explanation:
The businesses that operate in U.S. economy have great impact on the prosperity of the American market. The supply and demand of good will impact the overall economic value of the country as a whole. The business that operate in high efficiency will be able to produce goods at lower prices and therefore there will be lesser price rise in the market.
The F. Mercury, Capital account has a credit balance of $43,000 before closing entries are made. Total revenues for the period are $61,200, total expenses are $42,800, and withdrawals are $11,400.
Required:
What is the correct closing entry for the revenue accounts?
Answer:
Dr Revenue accounts $61,200
Cr Income Summary $61,200
Explanation:
Based on the information given we were told that the Total revenues for the period was the amount of $61,200 which means that the correct closing Journal entry for the revenue accounts will be to Debit Revenue accounts with the amount of $61,200 and to credit Income Summary with the same amount of $61,200.
Dr Revenue accounts $61,200
Cr Income Summary $61,200
The Lo Sun Corporation offers a 5.9 percent bond with a current market price of $816.50. The yield to maturity is 8.21 percent. The face value is $1,000. Interest is paid semiannually. How many years until this bond matures
Answer:
11.79 years
Explanation:
using the yield to maturity formula we can determine the number of periods until maturity:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
0.0821/2 = {29.5 + [(1,000 - 816.5)/n]} / [(1,000 + 816.5)/2]
0.04105 = {29.5 + [(1,000 - 816.5)/n]} / 908.25
0.04105 x 908.25 = {29.5 + [(183.5)/n]
37.2837 = 29.5 + [(183.5)/n]
7.7837 = 183.5/n
n = 183.5 / 7.7837 = 23.57 / 2 (years) = 11.79 years
mo memememememes
first person to answer has a chance at brainlyest
give memes
second person gets brainlyest if first is stupid
Answer:
hi
Explanation:
Marry will start to save in equal annual installments of $4,000 each year in 4 years (she will make her first savings payment 4 years from today). If she continues to save and earns interest of 4.7% and continues to make $4,000 savings contributions each year, how much will she have saved in 9 years from today after making her final contribution
Answer:
the amount saved is $27,003.07
Explanation:
The computation of the amount saved is shown below:
= Annual Payment × [{(1 + rate)^number of years - 1} ÷ rate]
= $4000 × [{(1 + 0.047)^6 - 1} ÷ 0.047]
= $4000 × [0.3173 ÷ 0.047]
= $4000 × 6.7508
= $27,003.07
hence, the amount saved is $27,003.07
We simply applied the above formula
And, the same is to be considered
ABC company had the following final balances after the first year of operations: assets, $35,000; stockholders' equity, $14,200; dividends, $2,600; and net income, $10,900. What is the amount of ABC's liabilities?
Answer:
$12,500
Explanation:
We will get the value for ABC's liabilities using the accounting equation.
Assets = liabilities + Equity
Given that;
Stockholder's equity = $14,200
Net income = $10,900
Dividends = ($2,600)
Total equity = $22,500
Assets = $35,000
Recall that ;
Assets = Liabilities + Equity
$35,000 = Liabilities + $22,500
Liabilities = $35,000 - $22,500
Liabilities = $12,500
ABC's liabilities is $12,500
Exhibit 24-7 Price Quantity Total Cost $10 10 $80 9 15 85 8 20 95 7 25 110 6 30 140 5 35 175 4 40 215 Refer to Exhibit 24-7. A monopolistic competitive firm that seeks to maximize profits will sell __________ units and charge a price of __________ . a. 30; $6 b. 15; $9 c. 25; $7 d. 10; $10 e. 35; $5
Answer:
The correct option is c. 25; $7.
That is, a monopolistic competitive firm that seeks to maximize profits will sell 25 units and charge a price of $7.
Explanation:
Note: This the data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation to the answer is now given as follows:
In economics, a monopolistic competitive firm maximizes profit at a point where its Marginal Cost (MC) equals its Marginal Revenue (MR), i.e. where MC = MR.
Note: See the attached excel file for the calculation of the Marginal Cost (MC) equals its Marginal Revenue (MR).
In the attached excel file, we use the following formula:
Total revenue = Price * Quantity
Marginal cost = Current total cost - Previous total cost
Marginal revenue = Current total revenue - Previous total revenue
In the attached excel file, Marginal Cost (MC) equals Marginal Revenue (MR) equals $15 (i.e. MC = MR = $15) at the point where Price is $7 and Quantity is 25 (This is indicated in bold red color)
Therefore, the correct option is c. 25; $7. That is, a monopolistic competitive firm that seeks to maximize profits will sell 25 units and charge a price of $7.
Whipple Corp. just issued 255,000 bonds with a coupon rate of 5.87 percent paid semiannually that mature in 20 years. The bonds have a YTM of 6.31 percent and have a par value of $2,000. How much money was raised from the sale of the bonds
Answer:
Amount Raised = $484,702,949.4 or 484.703 million
Explanation:
To calculate the amount of money raised from the sale of bonds, we must first calculate the price at which bonds were sold.
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 2000 * 0.0587 * 6/12 = $58.7
Total periods (n) = 20 * 2 = 40
r or YTM = 0.0631 * 6/12 = 0.03155 or 3.155%
The formula to calculate the price of the bonds today is attached.
Bond Price = 58.7 * [( 1 - (1+0.03155)^-40) / 0.03155] + 2000 / (1+0.03155)^40
Bond Price = $1900.79588 rounded off to $1900.80
The amount of money raised from the sale of 255000 bonds is,
Amount Raised = 255000 * 1900.79588
Amount Raised = $484,702,949.4 or 484.703 million
) As part of its initiative to implement just-in-time (JIT) manufacturing at the plant, Harley has reduced the number of engines loaded on each truck to 100. If each truck trip still costs $1000, how does this decision impact annual total inventory costs at Harley
Answer:
The decision will increase annual total inventory costs at Harley.
Explanation:
The JIT manufacturing system has the key function of reducing production and delivery time. It aims to serve customers of the product (usually vehicle parts) better.
To implement just-in-time manufacturing, Harley reduces the number of engines loaded on each truck to 100.
Harley does this, to save time in the process of supply!
Obviously, the truck can take more than 100 engines at a time but it would take longer for it to be dispatched.
Now, the cost for a truck trip remains the same at $1,000 while the truck carries less load. This whole decision will cause more engines to be retained in the company's inventory. This will increase inventory costs.
As for profits, they may increase, since products are supplied faster and purchased faster from the suppliers. So in general, it may not be a bad idea to introduce JIT manufacturing.