A fruit stand manager must decide how many pounds of bananas to stock weekly. From past records it appears that the demand for bananas is approximately normal with a mean of 1,200 pounds and a standard deviation of 400 pounds. The cost of the bananas is $0.15 per pound and the usual selling price is $0.45 per pound. At the end of each week a hog farmer comes by the fruit stand and purchases any
unsold, over-ripened bananas for $0.05 per pound. Calculate the amount of bananas the manager needs to purchase each week to maximize his profit. ____________________ pounds
Fill in the blank(s) with correct word
1468
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Answer the following statement true (T) or false (F)
Hydra Company entered into a direct-financing lease with Bridges Company for the use of an asset which cost Hydra $195,000 . The lease agreement contained a bargain purchase option effective immediately after the fifth rental, which provided that Bridges could purchase the asset at that time. The estimated life of the asset was 1 . years with an estimated residual value of $500 . Assuming that
Bridges uses straight-line depreciation, Bridges's annual depreciation expense would be a. $19,500 b. $19,450 c. $19,550 d. $19,000
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