Answer:
9 pizzas
Explanation:
Given that:
A pizza is ordered frozen from a local pizza establishment and baked at the cafeteria.
Judith anticipates a weekly demand of 10 pizzas.
Opening weeks in a year = 45 weeks
Opening days in a week = 5 days
Daily demand = 10/5 = 2
Ordering cost = $15
Holding cost = $0.40 /pizza/year
Lead time = 4 days
Safety stock = 1 pizza
The objective is to determine the optimal reorder point.
The optimal reorder point = (daily demand × lead time) + safety stock
The optimal reorder point =( 2 × 4 ) + 1
The optimal reorder point = 8 + 1
The optimal reorder point = 9 pizzas
You don't have to pay for construction and people are already aware of the business's existence.
Answer:
The value per bond must be $1000
Explanation:
The reason is that the short term investments must be valued at current fair market value which is $1000 per bond today so the perceived value of the unit bond which is $1200 per bond is irrelevant here.
The amount recorded = Number of bonds * Current market value
The amount recorded = 250 * $1000 = $250,000
Answer:
Following Journal Entries are recorded for Kingbird, Inc
Explanation:
<u>March 02</u>
Debit: Account Receivable = $954,000
Credit: Sale = $954,000
(Credit Sale is Recorded)
Debit: Cost of Good Sold = $590,000
Credit: Inventory = $590,000
(To Record Cost of merchandise Sold)
Answer:
the cost of the equity of the company is 18%
Explanation:
The computation of the cost of equity is as follows
Cost of equity = Risk free rate of return + beta × (market rate of return - risk free rate of return)
= 4% + 1.4 × (14% - 4)
= 4% + 1.4 × 10%
= 4% + 14%
= 18%
Hence, the cost of the equity of the company is 18%
We simply applied the above formula so that the accurate percentage could come
Therefore the second option is correct
