A company uses 6,000 widgets a year. Order costs are $75 and carrying costs are 30 percent of the purchase price. The price breakdown is as follows: 1-999 $0.90 1,000-2,999 $0.88 3,000+ $0.86 Calculate the order quantity and use that information to answer the questions that follow. Question 10 (3.4 points) What is the Q value for the 1-999 price category as calculated by the equation before it is adjusted for feasibility? Round your answer to a whole number.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.