Days of supply is a term used to quantify the number of days a given quantity will last under certain conditions. It can be applied to manufacturers (calculates the time between acquisition of materials and sale of finished products) and retailers (how long inventory will last without replenishing under predicted demand), among others. The calculation can also be applied to medication to determine the length of time medication will last with recommended usage.Know More
Calculate the number of doses being consumed on any given day. For instance, if the medicine needs to be taken every 12 hours, the number is 2.
Determine the number of available doses. For a new bottle that contains 100 pills, the number would be 100.
Divide the inventory figure by the number of doses used daily. In this case, the result would be 100/2 = 50 days.
To calculate covariance, choose two stocks and a time frame, calculate the average price for each stock over the time frame, find the deviation of each stock, multiply the two deviations together, add the results, and divide by the total number of days. Calculating an investment covariance requires a list of historical prices, as it is a statistic that looks at historical prices to determine the relationship between two stocks or two bundles of stocks.Full Answer >
The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal. Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.Full Answer >
Optimal sales price is calculated as the necessary revenue to achieve a desired profit margin divided by the quantity of product units forecast to sell, explains small-business writer Gregory Hamel. A profit margin is the proportion of sales profit a business generates from revenue after subtracting production costs.Full Answer >
According to AmosWeb, total revenue is calculated by multiplying the price received from the product times the quantity of the product sold at that price. Total revenue is usually depicted as a total revenue curve with it being directly related to marginal revenue and average revenue.Full Answer >