Answer:
Annual Savings will be ;
Ordering Cost = $2,993.88
Holding Cost = $661.78
Explanation:
First Calculate the Economic Order Quantity (EOQ)
EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit
= √ ((2 × 783× 12 × $31) / ($11 × 32%))
= 407
Note : Currently the firm orders at 783 crates per month
Savings in Ordering Cost will be :
Savings = Ordering Cost at Current Quantity - Ordering Cost at EOQ
= (Total Demand / Current Quantity × Ordering Costs) - (Total Demand / Current Quantity × Ordering Costs)
= (9396/783 × $31) - (9396/407 × $31)
= $2,993.88
Savings in Holding Cost will be :
Savings = (Current Quantity - Economic Order Quantity) / 2 × Holding Cost per unit
= (783 - 407) / 2 × ($11 × 32%)
= $661.78
The answer is True, hope this helps
Answer:
WDF Inc. is correct. From the fact that JLG Architectural Products and East Coast Window Installers Inc. were partners in the window installation subcontract, they should be jointly and severally held liable for any liability arising from the window installation project unless they have contrary agreements clearly differentiating their liabilities in the partnership.
Explanation:
WDF Inc. = main contractor
JLG Architectural Products = subcontractor and partner to East Coast
East Coast Window Installers Inc. = subcontractor and partner to JLG
JLG Architectural Products and East Coast Window Installers Inc have formed a partnership when they come together to form a business or execute a business transaction jointly. A joint venture is a kind of partnership.
Answer:
Project 1
Explanation:
The computation of the payback period is shown below:
As we know that
Payback period = Initial investment ÷ Net cash flow
For project 1
The payback period would be
= $60,000 ÷ $20,000
= 3 years
For project 2
The payback period would be
= $80,000 ÷ $20,000
= 4 years
Based on the payback period, project 1 should be chosen as the initial amount would be recovered in 3 years instead of 4 years shown in project 2
