In One Week,Mohammed Can Knit 5 Sweaters or Bake 240

question 95

Multiple Choice

In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Which of the following is correct?

• A)Mohammed has an absolute and comparative advantage in both tasks.
• B)Aisha has an absolute and comparative advantage in both tasks.
• C)Mohammed has an absolute advantage in both tasks and a comparative advantage in knitting sweaters.
• D)Aisha has an absolute advantage in both tasks and a comparative advantage in knitting sweaters.
• E)Mohammed has an absolute advantage in both tasks and a comparative advantage in baking cookies.

Estimate the initial investment amount given a future value, interest rate, and investment duration.

Understand the concept of Economic Order Quantity (EOQ) and how it affects inventory costs.

Calculate optimal ordering quantities to minimize the total inventory cost, including order and holding costs.

Determine the reorder points and safety stock levels to manage stockouts and maintain desired service levels.

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Definitions:

Fixed Overhead

A type of business expense that does not change with the level of production or sales, such as rent, salaries, and insurance.

Selling Costs

Expenses associated with the selling process, including advertising, sales commission, and shipping costs.

Operating Loss

A situation where a company's operating expenses exceed its revenue, indicating that it is not making a profit from its core business activities.

Variable Costs

Costs that vary directly with the level of production or sales volume.