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Business, 23.03.2021 04:50 bentleyking1k

A world traveler prepares to leave the comforts of home for a back to nature visit to Gilligan’s Island, where all transactions are conducted in cocoanuts. The traveler can buy cocoanuts for $2 each before the journey. If he fails to bring enough cocoanuts with him and runs out, he must get some cocoanuts flown in at a cost of $5 each (assume that at that time he will know exactly how many cocoanuts he needs). If he finishes his vacation and has leftover cocoanuts he can cash them in when he returns home, but will receive only $1.50 per cocoanut. Furthermore, the traveler assesses a cost of $0.5 to carry a cocoanut with him (for each direction). For example, (i) If the traveler takes 5 cocoanuts and 4 were needed, then the cost is: $2*5 + $0.5*5 + $0.5*1 - $1.5*1 = $11.5 (ii) If the traveler takes 3 cocoanuts and 4 were needed, then the cost is: $2*3 + $0.5*3 + $5*1 = $12.5 What is the Cu/(Cu+Co) ratio for determining the right number of cocoanuts to carry on the journey? A. Between 75% - 90% B. Less than 40% C. Between 60% - 74.99% D. Larger than 90% E. Between 40% - 59.99%

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