Answer:
30,000 units
Explanation:
we can use the economic order quantity formula:
EOQ = √(2SD/H)
where:
- S = order cost (per purchase order) ≈ production run cost = $900
- D = demand in units (annual basis) ≈ production requirement = 1,500,000 units
- H = holding costs (per unit, per year) = $3 per item, per year
EOQ = √[(2 x $900 x 1,500,000) / $3] = 30,000 units
Answer:
Cost of land = $76,240
Explanation:
Cost of land = cash price + accrued taxes + attorney's fees + broker's commission + clearing and grading
Cost of land = $61,440 + $4,720 + $2,660 + $3,360 + $4,060
Cost of land = $76,240
- Original cost is the total price associated with the purchase of an asset.
- The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use.
- These costs include the purchase price and such factors as commissions, transportation, appraisals, warranties and installation and testing.
- Original cost can be used to value an asset type, including equipment, real estate and security instruments.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Kristen Lu purchased a used automobile for $10,100 at the beginning of last year and incurred the following operating costs: Depreciation ($10,100 ÷ 5 years) $ 2,020 Insurance $ 1,100 Garage rent $ 600 Automobile tax and license $ 280 Variable operating cost $ 0.14 per mile
1) 10,000 miles
Insurance= 1,100
Garage= 600
Tax= 280
Variable costs= 0.14*10,000= 1,400
Total= $3,380
Cost per mile= 3380/10000= $0.338
2) The only relevant cost is the variable operating cost per mile. The other costs will exist whether she uses the car or not.
Answer:
The net present value of the machine is $5530
Explanation:
Data provided in the question:
Cost of the equipment = $84,000
Annual after-tax net income from the equipment after deducting depreciation = $3,000
Depreciation = $28,000
Useful life = 3 years
Required return on investment = 9% = 0.09
Now,
After-tax cash flow = After-tax net income + Depreciation
= $3,000 + $28,000
= $31,000
Therefore,
Net Present Value = Present value of cash flow - Investment
= ( $31,000 × PVIFA(11%, 3)
) - $84,000
= ( $31,000 × 2.5313 ) - $84,000
= $78470.3 - $84,000
= -$5529.7 ≈ - $5530
hence,
The net present value of the machine is $5530
Answer:
Option C.
Explanation:
In terms of making sales, Closing is a term that is used to refer to the moment when a customer decides to make the purchase.
There are numerous closing techniques, and the minor-point close is one of the techniques.
The minor-point close is the technique whereby the salesperson tries to intentionally gain the agreement of the customer or prospect on a minor point, and then uses it to assume that the sale is closed.
This technique is exemplified in the scenario presented above. Edward has concluded that Kristy wants to buy the black car, just because she has agreed that she liked it.
