During a six month period, a department had planned sales of $75,000 and planned turnover of 2.6. Using the Basic Stock Method, determine the BOM stock for February, if planned sales for February are $10,500.

the BOM stock is $26,846

Explanation:

The computation of the BOM stock for the feb month is shown below:

But before that following calculations need to be done

Average stock is

= net sales ÷ stock turnover

= $75,000 ÷ 2.6

= $28,846

Now the basic stock is

= Average stock - monthly sales

= $28,846 - ($75,000 ÷ 6)

= $16,346

And, finally BOM stock is

= Planned sales + basic stock

= $10,500 + $16,346

= $26,846

hence, the BOM stock is $26,846

i guess you could put raise the economic balance

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.