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3 years ago

When using the simple EOQ model to determine optimal order quantity, which of the following is true?

Business

1 answer:

Morgarella [4.7K]3 years ago

3 0

Answer:

C. Order quantity increases as holding cost per unit per year decreases

Explanation:

the formula for calculating economic order quantity (EOQ) is:

EOQ = √(2SD/H)

S = cost per order
D = annual demand
H = holding cost per unit

If holding cost per unit (H) decreases, the EOQ will increase. Whenever you are dividing, if the denominator decreases, the result will be larger.

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Gordon Industries has 6 percent coupon bonds outstanding with a face value of $1,000 and a market price of $959.21. The bonds pa

algol13

12.0 years will take for these bonds to mature.

What is a coupon in bonds?

The term "coupon," which is also sometimes referred to as "coupon payment," refers to the annual interest rate that is paid on a bond from the date of issuance until maturity. It is described as being a percentage of the bond's face value. When discussing coupons, the coupon rate is frequently employed.

How does coupon rate affect bond price?

The price of bonds is significantly influenced by the coupon rate on a bond in comparison to current market interest rates. Bond prices increase when a coupon is more than the current interest rate; prices decrease when a coupon is lower.

Learn more about coupon in bonds: brainly.com/question/22504216

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3 0

1 year ago

Paradise Corp. has determined a standard labor cost per unit of $10.20 (1 hour × $10.20 per hour). Last month, Paradise incurred

bezimeni [28]

Answer:

Direct Labor Rate Variance = $825 favorable

Direct Labor Efficiency Variance = $510 favorable

Total Direct Labor Spending Variance = $1,335 favorable

Explanation:

The computations are shown below:

Direct Labor Rate Variance

= (Standard rate - Actual rate) × Actual hours

= ($10.20 - $16,005 ÷ 1,650 labor hours) × 1,650 direct labor hours

= ($10.20 - $9.7) × 1,650 direct labor hours

= $825 favorable

Direct Labor Efficiency Variance

= (Standard Hours allowed - Actual hours) × Standard rate

= (1,700 units × 1 hour - 1,650 hours) × $10.20

= (1,700 hours - 1,650 hours) × $10.20

= $510 favorable

Total Direct Labor Spending Variance

= Standard cost - actual cost

= 1,700 hours × $10.20 - $16,005

= $17,340 - $16,005

= $1,335 favorable

3 0

3 years ago

The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet i

tankabanditka [31]

The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled of Long-term liabilities.

What is Long-term liabilities?

Long-term liabilities can be regarded as loans aa well as other financial obligations that the repayment schedule would be expected to last over a year.

Some of the examples long-term liabilities are;

deferred revenues
post-retirement healthcare liabilities.
bonds payable
long-term loans
pension liabilities

It should be noted that balance in Discount on Bonds Payable that has a due time of three years would be reported at Long-term liabilities section.

Learn more about Long-term liabilities at:brainly.com/question/25596583

4 0

2 years ago

A group of nations establishes a free-trade zone. What is the most likely effect?

mixer [17]

The answer is trade increases<span />

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3 years ago

When you deposit $50 in currency at Old National Bank, A. its liabilities decrease by $50. B. its reserves increase by less t

Eddi Din [679]

Answer:

Explanation:

Its reserve increase by less than 50 because of reserve requirement

5 0

2 years ago