ABC Company sells 2,564 chairs a year at an average price per chair of $147. The carrying cost per unit is $27.46. The company orders 500 chairs at a time and has a fixed order cost of $81 per order. The chairs are sold out before they are restocked. What is the economic order quantity?
In New York, you can exchange $1 for €0.8855 or £0.6781. Suppose that, in Berlin, £1 costs €1.2088. How much profit can you earn on $15,469 using triangle arbitrage?
ABC Company sells 3,961 chairs a year at an average price per chair of $152. The carrying cost per unit is $22.72. The company orders 268 chairs at a time and has a fixed order cost of $123.5 per order. The chairs are sold out before they are restocked. What are the total shortage costs?
You visited Switzerland over summer and brought back 6,923.51 swiss francs to the United States. How many U.S. dollars will you get if you exchange your swiss francs for U.S. dollars? The exchange rate is 1 U.S dollar = 0.8649 swiss francs.
Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.0907 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.1695 euros. What is the cross-rate of euros to Swiss francs (Euro/SF)?