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Romashka [77]
3 years ago
6

A large law firm uses an average of 10 packages of copier paper a day. Each package contains 500 sheets. The firm operates 260 d

ays a year. Storage and handling costs for the paper are $1 per year per package, and it costs approximately $10 to order and receive a shipment of papers. a) What order quantity would minimize total annual ordering and holding cost? b) Calculate the total annual inventory control cost using your order quantity from part a. c) Except for rounding, are annual ordering and holding costs equal at the EOQ? d) The office manager is currently using an order quantity of 100 packages. The partners of the firm expect the office to be managed in a cost-efficient manner. Would you recommend that the office manager use the optimal order quantity instead of 100 packages? Justify your answer.
Business
1 answer:
Grace [21]3 years ago
4 0

Answer:

(a):Annual demand = 10 packages per day*260 days per year = 2600 packages per year.

H = $1 and S = $10.

Thus Order quantity = (2*2600*10/1)^0.5 = 228 packages

(b): Total annual inventory control cost = Q/2*H + D/Q*S

= 228/2*1 + 2600/228*10

= 114 + 114.03

= 228.03

(c): Yes both annual ordering costs and holding costs are equal at $114.

(d): In case of order quantity of 100 packages the cost will be = 100/2*1 + 2600/100*10

= 50 + 260

= 310.

Thus the cost figure of $310 in case of 100 packages is more than the cost of $228.03 when 228 packages are ordered. Hence I will recommend that the office manager use the optimal order quantity instead of 100 packages.

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Answer: C. An actor who comes from a respected talent agency.

Explanation:

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Look at it this way, would you take investment advice from an investment banker or from an entrepreneur? Both could present very strong cases but the Investment Banker has expertise in the subject and is more likely to be picked.

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3 years ago
Assume that the marginal propensity to consume is 0.8 and that potential output is $800 billion. If real GDP is $850 billion, to
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The following policies would bring the economy to potential output is Decrease government spending by $10 billion.

<h3>What is Marginal Propensity?</h3>

The "Marginal Propensity" to consume is defined as calculate quantification of money that consumers are ready to spend.

The term "Marginal propensity" to consume is term used in economics. It measures monetary value which consumer is willing to spend to buy goods and services instead of saving it.

The "Marginal Propensity" to consume tends to increase economic activities of country by keeping cash flowing and by not keeping it stagnant. It also helps in increasing trade value and quality and cost of products because it increases healthy competition among companies and in which consumers are ultimately benefitted.

Therefore , we can conclude that the correct option is C.

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Mike is applying for a home loan and wants to buy a house worth $150,000 in a neighborhood close to his work. however, he only h
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Pay PMI (private mortgage insurance) which is the amount the lender charges to protect their interests in case the borrower stops paying and defaults on the loan.

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Big-Mouth Frog Corporation had revenues of $200,000, expenses of $120,000, and dividends of $30,000. When Income Summary is clos
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Answer:

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Explanation:

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Using this formula

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2 years ago
According to classical macroeconomic theory and monetary neutrality, changes in the money supply affect?
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GDP deflator = nominal GDP / real GDP * 100

Other price indexes such as CPI and GDP deflators are not formed in fixed baskets of goods and services. The basket changes each year depending on the investment and consumption patterns of the people of the year.

The GDP deflator is an essential indicator of the economy and helps to compare the year-to-year rise in price levels of goods and services. Unlike the Consumer Price Index (CPI), the GDP deflator allows comparisons across multiple time periods without using the base year as a constant or specific commodity basket.

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6 0
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