Answer:
C. the production order quantity model does not require the assumption of instantaneous delivery.
Explanation:
EOQ refers to Economic Order Quantity method, this method particularly aims at 0 extra inventory in hand and keeping the total inventory in hand which is needed and then there is n assumption that the goods shall be delivered instantly.
Under the production order quantity model the model is made to calculate the quantity to be ordered for meeting the demand of production units.
This aims at the minimum order quantity to be delivered to meet the production needs.
Answer:
$4,900
Explanation:
Given that,
Total cost at a production level of 400 units = $8,500
Each unit of pulp requires = 6 direct labor hours
Variable cost = $1.50 per direct labor hour
Total variable cost:
= Cost per direct labor hour × Direct labor hours required for each unit × No. of units produced
= $1.50 × 6 × 400
= $3,600
Total cost is sum total of total fixed cost and total variable cost.
Total cost = Total fixed cost + Total variable cost
$8,500 = Total fixed cost + $3,600
$8,500 - $3,600 = Total fixed cost
$4,900 = Total fixed cost
Answer:
c) Broker Factor.
Explanation:
A broker factor is an agent that sells goods that are from someone else for a comission and this person takes possession of the products that is selling. Also, a broker factor can make a sell in his/her name and has authorization to receive the money from the sale. Because of this, Mike's relationship with K&M is that of a broker factor.
