Calculate the total consumption for the 12 months.

Question

ScanSolve AI Tutor · Accepted Answer

To calculate the minimum stock, we first need to find the average monthly consumption. The problem states that the minimum stock is fixed at 2 months of average consumption.

Calculate the total consumption for the 12 months.
The table provides the consumption for each month and a total.
Total consumption = $630 + 654 + 568 + 698 + 645 + 732 + 845 + 50 + 658 + 768 + 745 + 850 = 7843 \text{ kg}$ .
Calculate the average monthly consumption.
The average monthly consumption is the total consumption divided by the number of months.
$\text{Average monthly consumption} = \frac{\text{Total consumption}}{\text{Number of months}}$ $\text{Average monthly consumption} = \frac{7843 \text{ kg}}{12 \text{ months}}$ $\text{Average monthly consumption} \approx 653.5833 \text{ kg/month}$
Calculate the minimum stock.
The minimum stock is 2 months of average consumption.
$\text{Minimum stock} = 2 \times \text{Average monthly consumption}$ $\text{Minimum stock} = 2 \times \frac{7843}{12} \text{ kg}$ $\text{Minimum stock} = \frac{7843}{6} \text{ kg}$ $\text{Minimum stock} \approx 1307.17 \text{ kg}$
The minimum stock is approximately $\text{1307.17 kg}$ .

Calculate the total consumption for the 12 months.

Answer

Step-by-step solution

Calculate the total consumption for the 12 months.

Calculate the average monthly consumption.

Calculate the minimum stock.

Try one yourself

Still stuck on this one?

More Economics Questions