Use the Table Below to Answer the Following Question(s) Use a Linear Optimization Model Based on the Data to Hides

question 7

Multiple Choice

Use the table below to answer the following question(s) .
Letherin Hides is a company that makes boots specifically targeting college students. Forecasts of sales for the next year are 200 in the summer, 450 in the autumn, and 500 in the winter.
Accessories that are used on the boots are purchased from a supplier for $31.66. The cost of capital is estimated to be 24% per year (or 6% per quarter) ; thus, the holding cost per item is 0.06($31.66) = $1.9 per quarter (rounded figure) . Letherin Hides hires freelance art designers at part-time to craft designs during the summer, and they earn $6 per hour. In the autumn, labor is more difficult to keep, and the owner must pay $6.5 per hour to retain qualified help. Because of the high demand for part-time help during the winter holiday season, labor rates are higher in the winter, and workers earn $7.75 per hour. Each boot design takes 2 hours to complete. How should production be planned over the three quarters to minimize the combined production and inventory holding costs?
The table below provides information on Letherin Hides boot design cost and production. $\begin{array}{|l|l|l|l|}\hline \text { Letherin Hides } & & & \\\hline & & & \\\hline \text { Data } & & & \\\hline & & & \\\hline & \text { Summer } & \text { Autumn } & \text { Winter } \\\hline \begin{array}{l}\text { Unit Production } \\\text { Cost }\end{array} & 12 & 13 & 15.5 \\\hline \text { Unit Inventory } & & & \\\text { Holding Cost } & 1.9 & 1.9 & 1.9 \\\hline \text { Demand } & 200 & 450 & 500 \\\hline\end{array}$ Use a linear optimization model based on the data to answer the following questions.
-According to the linear optimization model, what is the total amount to be produced in summer?

• A) 200
• B) 100
• C) 550
• D) 0

Recognize the structure and purpose of T accounts and journal entries.

Understand the impact of transactions on shareholder's equity.

Distinguish between the recording of revenues and expenses and their impact on financial statements.

Grasp the basics of accounting transactions and their requirements for recording.

---

Definitions:

Controlled Crash

A deliberate action to safely manage the descent and impact of a failing system, structure, or vehicle to minimize damage or harm.

Crash Test Dummies

Anthropomorphic test devices used in controlled experiments to simulate human body responses and injuries caused by vehicle collisions.

Domination

The exercise of control or influence over someone or something, or the state of being so controlled.

Submission

The action of accepting or yielding to a superior force or to the will or authority of another person.