Answer:
D×L + SS
Explanation:
The reorder point (ROP) is the inventories or stock level for a certain product that, when attained, initiates the reordering of more inventories. The lead time it will take to refill inventories is taken in when computing the reorder points for different stock holding units. This ensures inventory levels do not approach zero.
Computing reorder points necessitates a thorough understanding of purchase habits over a specific time period. The more ROP you compute for each product, the better you'll be able to anticipate future demand and guarantee you're using the reorder quantity calculation appropriately.
From the given information in the question:
The reorder point can be determined by using the formula:
Reorder point = Demand (D) at the point of leas time (L) with the addition of safety stock (SS)
Reorder point = D×L + SS
Answer:
The right solution is Option b ($4606
).
Explanation:
The given values are:
Company sells merchandise,
= $5700
Company returns,
= $1000
Now,
The amount of the check will be:
=
=
=
= ($)
Answer:
New Bond Price = $875.6574005 rounded off to $875.66
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM or interest rate will be,
<u>For 3 year bond:</u>
Coupon Payment (C) = 1000 * 0.05 = $50
Total periods (n) = 3
r or YTM = 0.10 or 10%
The formula to calculate the price of the bonds today is attached.
Bond Price = 50 * [( 1 - (1+0.1)^-3) / 0.1] + 1000 / (1+0.10)^3
Bond Price = $875.6574005 rounded off to $875.66
Answer:
3.15%
Explanation:
The computation of the arithmetic average rate of return is shown below:
Arithmetic mean = (Year 1 + year 2 ...... Year n return) ÷ (Total number of years)
The rate of return is
= (Capital gain + dividend) ÷ Price
For 2010 - 2011 = ($110 - $100 + 4) ÷ $100 = 14%
For 2011 - 2012 = ($90 - $110 + $4) ÷ $100 = -14.55%
For 2012 - 2013 = ($95 - $90+ 4) ÷ $90 = 10%
Now the arithmetic average rate of return is
= (14% - 14.55% + 10%)
= 3.15%