In my opinion, reliability and consistency are two of the most important leadership skills for a small business to succeed for a long time. With these two characteristics a small business can build a returning customer base as well as a good rating on review websites. For example, many local barbershops provide consistent quality haircuts which builds reliability and in turn demand and returning customers.
Answer:
The EOQ is 642
The reorder point is 2,699
Explanation:
In order to calculate the EOQ we would have to calculate the following formila:
EOQ=√2DS/H
According to the given data we have the following:
D = 55,000
S = 21
H=40%*purchase cost
H=0.4*14 = 5.6
Therefore, EOQ=√(2*55,000*21)/5.6
EOQ=642
To calculate the reorder point If a service level of 98% is desired during the reorder interval, we would have to use the following formula:
reorder point=dL+z√σ∧2dL+σ∧2Ld∧2
reorder point=(7*205.22)+√(2.05*√(5∧2*7)+(3∧2*205.22∧2)
reorder point=2,699
<span>This is an example of a sales promotion. Sales promotion is one of the five parts of the promotional mix. Some sales promotions might include: contests, coupons, freebies, point-of-purchase displays, premiums, prizes, product samples, and rebates. Sales promotion can be directed towards sales staff, retailers, or the customer.</span>
Answer:
Interest expense should be reported in the 2020 income statement $3,000
Explanation:
Notes payable amount $ 50,000.00
1 year interest @8% (50000 x 8%) $ 4,000.00
Less: Interest for 2019 for 3 months (4000/12*3) $ 1,000.00
Interest expense for 2020 $ 3,000.00
<u>Calculation of Marginal Revenue:</u>
Marginal Revenue can be calculated using the following formula:
Marginal Revenue = Change in Revenue/ Change in Quantity
It is given that total revenue increases from $18,000 to $26,000 when quantity increases from eight to ten. It means change in Revenue is (26000-18000) = $8,000 and Change in Quantity is (10-8) = 2
Hence, Marginal Revenue =8000/2 = $4,000
Hence the marginal revenue is <u>$4,000</u>
