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lisov135 [29]
3 years ago
12

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production fa

cility 300 days per year. It has orders for about 12,500 flashing lights per year and has the capability of producing 105 per day. Setting up the light production cast $49. The cost of each light is $0.95. The holding cost is $0.15 per light per year. What is the optimal size of the production run? What is the average holding cost per year? What is the average setup cost per year? What is the total cost per year, including the cost of the lights?
Business
1 answer:
Anna007 [38]3 years ago
7 0

Answer:

Given,

Annual demand, D = 12500,

Setting up cost, S = $ 49,

Production rate per year, P =  production facility × capability of production = 300 × 105 = 31500,

Holding cost per year, H = $ 0.15,

Hence,

(i) Optimal size of the production run,

Q = \sqrt{\frac{2DS}{H(1-\frac{D}{P})}}=\sqrt{\frac{2\times 12500\times 49}{0.15(1-\frac{12500}{31500})}}=3679.60238126\approx 3680

(ii) Average holding cost per year,

=\frac{QH}{2}(1-\frac{D}{P})

=\frac{3680\times 0.15}{2}(1-\frac{12500}{31500})

=166.476190476

\approx \$ 166.48

(iii) Average setup cost per year,

=\frac{D}{Q}\times S

=\frac{12500}{3680}\times 49

=166.44021739

\approx \$ 166.44

(iv) Total cost per year = average setup cost per year + average holding cost per year + cost to purchase 12500 lights

= 166.44 + 166.48 + 12500(0.95)

= $ 12207.92

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Flagler Corporation shows a total of $650,000 in its common stock account and $1,120,000 in its paid-in capital in excess of par
8090 [49]

Answer:

130000 shares issued

Explanation:

Shares issued = Total par value / Par value per share

= $650,000 / $5

= 130000 shares issued

8 0
3 years ago
Housing expenses are commonly referred to as piti. what does piti stand for?a.principal, income, taxes, investmentb.payment, inv
Rasek [7]

Correct option is d : principal, interest, taxes, insurance.

Housing expenses are commonly referred to as piti. piti stand for principal, interest, taxes, insurance.

Principal, interest, taxes, insurance or in other words  PITI are the sum components of a mortgage payment. Specially, components of the mortgage payment consists of the principal amount, loan interest, property tax, as well as  the homeowners insurance and private insurance premiums mortgage.

PITI is generally quoted on the monthly basis. It  is then compared to a borrower's monthly gross income for computing the front-end and back-end ratios of any individual.

To know more about PITI here:

brainly.com/question/1395659

#SPJ4

4 0
1 year ago
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $44,000 cash from Busb
Brums [2.3K]

If Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year. The income statement, capital statement, balance sheet, and statement of cash flows for B&B’s 2016 fiscal year are:

  • Income statement $23,600
  • Capital statement: Busby $51,440, Beatty $77,660
  • Balance sheet : Total Assets $129,100, Total Liabilities and Equity $129,100
  • Statement of cash flows for B&B’s $129,100

a. Income Statement

Income Statement for the year ended December 31, 2016  

Cash Revenues $42,000

Less: Cash Expenses ($18,400)

Net Income $23,600

($42,000-$18,400)

b. Capital statement

Capital Statement for the year ended December 31, 2016  

Busby Beatty

Beginning Capital Balance $44,000 $66,000

Less:- Withdrawal ($2,000) ($2,500)

Add:- Net Income $9,440 $14,160

[$44,000/($44,000+$66,000)×$23,600=$9,440]

[$66,000/($44,000+$66,000)×$23,600=$14,160]

Ending Capital Balance $51,440 $77,660

c. Balance Sheet

Balance Sheet As of December 31, 2016  

Assets  

Cash $129,100

($51,440+$77,660)

Total Assets  $129,100

Liabilities  

Equity  

Busby $51,440

Beatty $77,660  

Total Liabilities and Equity  $129,100

d. Cash Flow Statement

Cash Flow Statement  for the year ended December 31, 2016

Cash Flows from Operating Activities:  

Revenue from Operations      $42,000  

Operating Expenses           ($18,400)  

Net Cash flow from operating activities $23,600

($42,000-$18,400)

Net Cash flow from Investing activities  $0

Cash Flows from Financing Activities  

Proceeds from Partners $110,000

($44,000+$66,000)

Withdrawal by Partners ($4,500)

($2,000+$2,500)

Net cash flow from financing activities $105,500

($110,000-$4,500)

Net cash change   $129,100

($23,600+$0+$105,500)

Opening cash balance  $0

Ending Cash Balance  $129,100

Learn more here:

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4 0
2 years ago
On December 31, the company's Cash account had a balance of _____. $40,000 $54,000 $110,000 $124,000
notka56 [123]

Answer:

The company's Cash account had a balance of <u>$54,000</u> on December 31.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the questions as follows:

Company's cash account had balance of 14000 on January 1

Receipts from customers- 50,000

payments for dividends- 10,000

receipts for dividends- 5,000

payments for merchandise- 25,000

receipts from issuance of stock- 20,000

On December 31, the company's cash balance is?

A 40,000

B 54,000

C 110,000

D 124,000

The explanation of the answer to the question is now given as follows:

the company's Cash account balance On December 31 can be obtained by simply adding the total cash receipts to and deducting the total cash payments from the Company's cash account balance of 14000 on January 1. This can be expressed as follows:

Cash balance on December 31 = Cash account balance on January 1 + Total cash receipts - Total cash payments .............. (1)

Where we have:

a. Cash account balance on January 1 = $14,000

b. Calculation Total cash receipts

Details                                                     $  

Receipts from customers                  50,000

receipts for dividends-                         5,000

receipts from issuance of stock     <u>   20,000   </u>

Total cash receipts                       <u>     75,000    </u>

c. Calculation Total cash payments

Details                                                      $  

Payments for dividends                     10,000

payments for merchandise            <u>   25,000  </u>

Total cash payments                     <u>   35,000  </u>

Substituting the values into equation (1), we have:

Cash balance on December 31 = $14,000 + $75,000 - $35,000 = $54,000

Therefore, the company's Cash account had a balance of <u>$54,000</u> on December 31.

6 0
3 years ago
7. Problems and Applications Q7 A dozen eggs cost $0.96 in December 2000 and $2.75 in December 2015. The average wage for worker
Novay_Z [31]

Answer:

By what percentage did the price of a dozen eggs rise?

  • [($2.75 - $0.96) / $0.96] x 100 = 186.46%

By what percentage did the wage rise?

  • [($21.26 - $14.28) / $14.28] x 100 = 48.88%

In order to earn enough to buy a dozen eggs, a worker had to work <u>4.04</u> minutes in December 2000 and <u>7.76</u> minutes in December 2015.

  • ($0.96 / $14.28) x 60 = 4.04 minutes
  • ($2.75 / $21.26) x 60 = 7.76 minutes

Workers' purchasing power in terms of eggs between 2000 and 2015.

  • purchasing power in terms of eggs in 2000 = 14.875 dozens of eggs per hour
  • purchasing power in terms of eggs in 2015 = 7.76 dozens of eggs per hour

3 0
3 years ago
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