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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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sattari [20]

Answer:

(C) Debit Office supplies, $500; credit Accounts payable, $500

Explanation:

Businesses maintain the office supplies inventory of supplies and record the supplies purchased into this account and expense it afterward with the usage of inventory. In this question offices supplies purchased will be debited to office supplies account. As it is purchased on account so it will be credited to account payable account to make a liability against the transaction.

6 0
3 years ago
Suppose that consumption depends on the interest rate. how if at all does this alter the conclusions
zalisa [80]
Here is the answer. Suppose that consumption depends on the interest rate, how this alters the conclusions is that at any given level of the interest rate, national saving falls by the change in government purchases. You should also consider <span>what happens when government purchases increase. Hope this helps.</span>
3 0
3 years ago
A business organization needs to make up a 5 member fund-raising committee. The organization has 10 accounting majors and 8 fina
miss Akunina [59]

Answer:

The fund raising committee can be organized in 3,276 different ways.

Explanation:

The committee can have the following structures:

Accounting majors            Finance majors

        0                                          5

        1                                           4

        2                                          3

C(10,0) x C(8,5) = (10! / 10!) x (8! / 3!5!) = 1 x 56 = 56

C(10,1) x C(8,4) = (10! / 9!1!) x (8! / 4!4!) = 10 x 70 = 700

C(10,2) x C(8,3) = (10! / 8!2!) x (8! / 5!3!) = 45 x 56 = 2,520

total possibilities = 2,520 + 700 + 56 = 3,276

                               

6 0
2 years ago
Which of the following statements is not accurate descriptions of the business market? Mrs. Phillip, a retail buyer for Blooming
Natali [406]

Answer:

Mrs. Phillip, a retail buyer for Bloomingdale's, does all the shopping for her family at the same store.

Explanation:

The business market is the market where you can sell your product and services to the other businesses so it can be used as a raw material for the other business in order to manufacture the products. And, the other reason is to purchased the products and resell them.

So based on the given statements, the first option is considered as in the remaining statements there are business transactions but in this only one person i.e. retail buyer is considered

8 0
2 years ago
Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting
s2008m [1.1K]

Answer:

The amount of uncollectible account expense was recorded for July was $9,500

Explanation:

According to the given data we have the following:

Accounts written off amount=$5,200

Increase in Allowance for Doubtful Accounts=$4,300

Therefore, in order to calculate the  amount of uncollectible account expense was recorded for July we would have to make the following calculation:

Uncollectible accounts expense for July= Accounts written off+ Increase in Allowance for Doubtful Accounts

Uncollectible accounts expense for July= $5,200+$4,300

Uncollectible accounts expense for July=$9,500

The amount of uncollectible account expense was recorded for July was $9,500

3 0
3 years ago
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