1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed
bezimeni [28]

Answer:

Cash flow to creditors in 2018 is −$85,000

Explanation:

2017 balance sheet of Kerber’s Tennis Shop, Inc is recorded as

Interest paid............................................................................$255,000

Less:

long-term debt in 2018.........................................................$2.21 million

Less: long-term debt brought forward from 2017..........$1.87 million

Total (taken as net new borrowing)...................................$340,000

Cash flow to creditors = 2018 Interest expense less net new borrowing

= $255,000 - $340,000

= −$85,000

8 0
3 years ago
Read 2 more answers
The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015,
Ainat [17]

Answer:a. Total common stock issued is 750 millions

b. In treasury is 109 million

c. Outstanding 750 million.

Explanation:

Issued shares referred to the total amount of authorised shares that has been issued to the public for subscription.

Treasury stock refers to parts of the issued stock that are held up for the ownership of the issuing company.

Outstanding stock refers to the total number of stock issued and fully paid for from the issued stock.

4 0
3 years ago
What are objectives of human resource department​
Fantom [35]

Answer:

Objectives of HRM include ensuring availability of resources, easy access to data, on-time payroll, ensuring compliances, etc. HRM objectives are basically influenced by organisational goals and vertical. Objective of HRM is to ensure a stable work environment with data at one place and efficient operations.

4 0
3 years ago
If a nation exports much of its output but imports little, will it be better or worse off? How about the reverse? What if a nati
Angelina_Jolie [31]
This is the situation of countries like Germany,

Where exports > imports...
The results is definitely good for the country. It will increase its trade surplus. This allow the country to amassed a huge number of foreign reserves which they can use to invest abroad..

While countries that import > exports, will experienced trade loss/deficit (just think it like the reverse)
8 0
3 years ago
Suppose two cities are considering tearing down their stadiums to build new ones. In one city, the old stadium cost $5 million t
timofeeve [1]

Answer:

These are the options for the question:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

B. They should be more willing to tear down the $50 million stadium, because it cost more to build.

C. The cost to build the old stadium shouldn’t be considered.

And this is the correct answer:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

Explanation:

City A will likely be more willing to tear down its old stadium because it costed $5 million to build. City B, on the other hand, will have to think twice because a stadium that costed $50 billion to build could have more value than it seems, or the City could simply not have enough money to build a better new stadium (something that would probably cost more than $50 billion to do).

4 0
3 years ago
Read 2 more answers
Other questions:
  • A monopoly:
    7·1 answer
  • If a firm adheres strictly to the residual dividend policy, and if its optimal capital budget requires the use of all earnings f
    15·1 answer
  • Accounts receivable $29,500
    9·1 answer
  • Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he i
    6·1 answer
  • Brainliest Week
    11·2 answers
  • Your Godmother left you an inheritance of ​$100,000​, payable to you when you turn 26 years old. You are now 21.​ Currently, the
    14·1 answer
  • Which situation has become more common as a result of globalization?
    14·1 answer
  • Plsss help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    5·2 answers
  • Hi mkahn :)
    11·1 answer
  • James was transferred by his company to go work in Hong Kong for six months. His headquarters in Dallas, Texas, assured him that
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!