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icang [17]
3 years ago
11

A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the follo

wing data, what setup cost will enable the desired production cycle? d = 400 per day (250 days per year), p = 4000 units per day, H = $40 per unit per year, and Q = 200 (demand for four hours, half a day).
Business
1 answer:
vova2212 [387]3 years ago
4 0

Answer: The options are given below:

A. $18.00

B. $1,036.80

C. $2.00

D. $7.20

E. $64.00

The correct option is D. $7.20

Explanation:

From the question above, we were given:

Annual demand = 100,000 units

Production = 4 hour cycle

d = 400 per day (250 days per year)

p = 4000 units per day

H = $40 per unit per year

Q = 200

We will be using the EPQ or Q formula to calculate the cost setup, thus:

Q = √(2Ds/H) . √(p/(p-d)

200=√(2x400x250s/40 . √(4000/(4000-400)

200=√5,000s . √1.11

By squaring both sides, we have:

40,000=5,550s

s=40,000/5,550

s=7.20

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WARRIOR [948]

Answer:

a. Decrease liabilities and decrease assets

Explanation:

First option "Decrease liabilities and decrease assets" is the correct option as far as only payment part of Journal entry is concerned.

Since Dividend is declared on 15 July on That date entry would have been:

Shareholder's Equity........Dr

To Dividend Payable(Liability) A/c......Cr

Then, on Payment date i.e. 15 august entry would be:

Dividend Payable(Liability)A/c.......Dr

To cash/Bank A/c..........Cr

Therefore, Liability is Decrease also asset is decreased on 15th August, 2020.

5 0
3 years ago
Rage, a leading motor vehicle manufacturer, introduces a new superbike model. it invites proposals from independent dealers who
uysha [10]
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6 0
3 years ago
You own 25 percent of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all-e
Akimi4 [234]

Answer:

$6 million

Explanation:

If 25% of the firm is worth $1.5 million, then 100% of the firm will be worth $6 million (= $1.5 million x 4).

This is an all equity firm, which means it has no liabilities, and it is also a closely held corporation which makes it harder for a stockholder to sell his/her shares. Basically the fair value of the 1,000 shares is the money you can get from your fellow shareholders.

3 0
3 years ago
McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build a new warehouse in Medicine
aleksley [76]

Answer:

No it wont have enough money to build a warehouse in two years.

Explanation:

Firstly we are given that the warehouse is $1 million so the company needs to save this amount of money in two years time.

We know that the company has invested $500000 to date therefore we need to calculate if this $50000 per quarter investment will cover the the other portion for $500000 to meet the warehouse cost of $1 million so we will use the future value annuity formula to calculate this which is :

Fv = C[((1+i)^n -1)/i]

where Fv will be the future value after two years of the $50000 investment

C is the periodic payment of $50000

i is the interest rate per period which is 6% per quarter

n is the number of periods the payment is done here it is 4 x 2years= 8 periods / investments of $50000 that will be done.

thereafter we substitute on the above formula:

Fv = 50000[((1+6%)^8 - 1)/6%]

Fv = $494873.40

then we combine this amount to $500000 to see if it reaches $1 million

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5 0
3 years ago
How do we track stock market performance?
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Hope this helps!
3 0
3 years ago
Read 2 more answers
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