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skelet666 [1.2K]
1 year ago
12

Explain the concepts of unitization and cube utilization. how are they related to benefit reducing transportation costs?

Business
1 answer:
Sliva [168]1 year ago
6 0

Cube utilization is the calculation which determines the total space used in storage.

Cube utilization is expressed as a percentage between 0% - poor and 100% - excellent, accordingly. So if you have filled every available spot in your warehouse with product, then you have 100 percent warehouse cube utilization.

Cube utilization is related to benefit reducing transportation costs, as effective cube utilization significantly lowers freight and supply chain costs. Cubing and weighing equipment helps companies make better use of their warehouse space, cut shipping costs and reduce errors.

Hence, in order to improve cube utilization, products should be shipped in bulk form to avoid packaging.

To learn more about transportation costs here:

brainly.com/question/28168850

#SPJ4

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Last year Aft charged $2,946,667 Depreciation on the Income Statement of Andrews. If early this year Aft purchased a new depreci
Kisachek [45]

Answer:

Decrease in Bank balance and increase in fixed assets

Explanation:

When a new depreciable asset is purchased, the money leaves the bank account hence reducing the bank balance in the statement of financial position, and on the other hand the 'Fixed asset' balance will rise by the same amount; recognizing the addition to the assets of the company. In this scenario the balance sheet totals remain unchanged as the same amount has been subtracted from 'bank' and added to 'fixed assets' all within the asset side.

However, if the asset is debt financed, it will increase the long term liability figure because 'bank loan' will be recognized. Hence the totals of the balance sheet will rise by the amount of the loan on the 'Capital and liabilities' side and the amount of the asset on the 'Asset' side.

Another impact is that the amount of depreciation charged to the Income Statement will be higher than $2,946,667 which was charged in the previous year because the new asset's depreciation will have to be added.

3 0
3 years ago
Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives
fomenos

Answer:

Assume: only one of the ware house expansion projects can be implemented and suppose that, if test marketing of the new product is carried out, the advertising campaign also must be conducted and vice versa. Also suppose that the purchase of new equipment cannot be undertaken unless the basic research or the extensive warehouse expansion are implemented.

Formulate the corresponding model for maximizing the net present value subject to the restrictions stated above

Yi (1 if investment alternative is selected, o otherwise)

i = 1, 2, 3, 4, 5, 6

Max Z = $4,000y1 + 6,000y2 + 10,500y3 + 4,000y4 + 8,000y5 + 3,000y6

∴ NPV = 17,500

4 0
3 years ago
You are considering a new product launch. The project will cost $1,006,000, have a four-year life, and have no salvage value; de
Serjik [45]

Answer:

A) In Best Case: revenues rise by 10% while costs decline by 10%. In the worst case, profits are declining by 10%, while costs are rising by 10%.

Scenario   Unit sales         Variable costs Fixed costs

  Base      360                   $16,300          $334,000

  Best        396                    $14,670           $300,600

  Worst      324                    $17,930           $367,400

b), c) Using the tax shield approach, the OCF and NPV for the base case estimate is:

OCF(base) = [($19,800 – 16,300)(360) – 334,000](0.60) + 0.40(1,006,000/4)

OCF(base)= $656,200

NPV(base) = –$1,006,000 + $656,200(PVIFA14%,4)

NPV(base) = $905,978.01

OCF(worst) = [($19,800 – 17,930)(324) – 367,400](0.60) + 0.40(1,006,000/4)

OCF(worst)= $243,688

NPV(worst) = –$1,006,000 + $243,688(PVIFA14%,4)

NPV(worst) = $ (295,963.28)

OCF(best) = [($19,800 – 14,670)(396) – 300,600](0.60) + 0.40(1,006,000/4)

OCF(best)= $1,139,128

NPV(best) = –$1,006,000 + $1,139,128(PVIFA14%,4)

NPV(best) = $2,313,091.27

d) OCF and NPV with Fixed Costs 344,000

OCF(base) = [($19,800 – 16,300)(360) – 344,000](0.60) + 0.40(1,006,000/4)

OCF(base)= $650,200

NPV(base) = –$1,006,000 + $650,200(PVIFA14%,4)

NPV(base) = $888,295.74

e) (Change in NPV in Case d wrt Case c)/Change in FC,

(888,295.74 - 905,978.01)/(10,000) = -1.75

8 0
3 years ago
A pump station has six 500 hp pumps that run an average of 5 hours a day each, a 5 hp sump
GaryK [48]

Answer:

4*0.07=energy use per day(x)

(x)*30=energy use in thirty days (y)

Therefore

X=$0.28

Y=$8.4

Explanation:

4 0
3 years ago
In what category is the purchase of a computer by a person for household use in national income accounting, that is, in how we c
Nataliya [291]

Answer:

is counted in C, personal consumption

Explanation:

GDP = Consumption spending + Investment spending + Government Spending + Net Export

Consumption spending is all spending by households on services and goods which could be either durable or non durable goods.

Investment is spending by businesses.

I hope my answer helps you

6 0
3 years ago
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