Number of boxes price per box according to price schedule is 3.18 orders.
Given
Annual demand D = 15875 boxes per year
Carrying cost H = 0.79 cents
Ordering cost S = $97
Optimal order quantity Q
Q=
Q = 1974 units
But at Q = 1974 units we are getting less discount. So, we calculate total cost at Q = 19, Q = 2000, Q = 5000, Q = 10000
Total cost = Purchase cost + Annual Holding cost + Annual ordering cost = PD + (Q/2)H + (D/Q)S
The total cost is less at optimal order quantity Q = 5000
a) Optimal order quantity = 5000 boxes
b) Number of orders = (D/Q) = 15875/5000 = 3.18
Number of orders = 3.18 orders
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Calculation of Total Manufacturing Overhead Costs:
Manufacturing overhead costs are indirect costs incurred in relation to the production.
From the given information manufacturing overhead costs shall include factory Utilities $5,000, Indirect labor $ 25,000, depreciation of production equipment $ 20,000
Hence the Total Manufacturing Overhead Costs shall be (5000+25000+20000)=<u>$50,000</u>
Answer:
a) WACC = 12.20%
Explanation:
Weighted average cost of capital is computed by allocating weights to different capitals.
Cost of bonds = Cost of debt = 5%
Cost of preferred stock = 9%
Cost of equity = 16%
As it is new issued and not from retained earnings.
With weights cost will be as follows
Bonds = 5% X $5/$20 = 1.25%
Preference share = 9% X $3/$20 = 1.35%
Equity = 16% X $12/$20 = 9.6%
WACC = 1.25 + 1.35 + 9.6 = 12.20%
Answer:
Customer Relationship Management (CRM)
Explanation:
The core of every CRM system is the gathering and securing of customer information. It all starts there in a complete customer database, later that information is analyzed, shared and updated.
CRM is extremely useful for retaining current customers (increasing customer loyalty) and gaining new ones.