Question

u. U poss Suppose that in the year 2015 Oceanaire, Inc. planned to produce 500 000 units of its lightweight scuba tanks of the 500.000 planned to produce a total of 3000 units would be added to the inventory at its new plant in Arizona. Also assume that these units have been selling at a price of $200 each and that the price has been constant over time. Suppose further that this year the firm but a new plant for 55 million and acquired $3.5 million worth of equipment. It had no other investment projects, and to avoid complications assume no depreciation Now suppose that at the end of the year. Oceanaire had produced 500.000 units but had only sold 450.000 units and that inventories now contained 50 000 units more than they had at the beginning of the year. At $200 each, that means that the firm added $10.000.000 in new invertory This year Oonare actually invested Enter your response as an integer) (Enter your response as an integer) Oceanaire planned to invest $ Oceanaire should produce A more output next year since it needs to add to its unplanned investment OB Soutout next year since it needs to reduce t uiment. OC more output next year since needs to add to its equipment OD s output next year since it needs to reduce unplanned investment Click to select your answers MacBook Pro Q Search or enter website name > N

Answer 1

Actual investment - $50106 for plant to t 85x16 se plant & $3.5x10b for equipment + $ 10x108 for inventory - $ 18,500,000 Planned investment = ($5x106) + ($15x100) + $5 x 10) - $113,500,000 Should produce