Answer:
Annual Savings will be ;
Ordering Cost = $2,993.88
Holding Cost = $661.78
Explanation:
First Calculate the Economic Order Quantity (EOQ)
EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit
= √ ((2 × 783× 12 × $31) / ($11 × 32%))
= 407
Note : Currently the firm orders at 783 crates per month
Savings in Ordering Cost will be :
Savings = Ordering Cost at Current Quantity - Ordering Cost at EOQ
= (Total Demand / Current Quantity × Ordering Costs) - (Total Demand / Current Quantity × Ordering Costs)
= (9396/783 × $31) - (9396/407 × $31)
= $2,993.88
Savings in Holding Cost will be :
Savings = (Current Quantity - Economic Order Quantity) / 2 × Holding Cost per unit
= (783 - 407) / 2 × ($11 × 32%)
= $661.78
Answer:
$-8,609
Explanation:
Calculation for How much would you need to set aside
Year Cashflows PVF 5% Present values
1 -500 *0.952381 =-476.19
2 -650(500+150) *0.907029 =-589.569
3 -800(650+150) *0.863838 =-691.07
4 -950(800+150) *0.822702 =-781.567
5 -1100(950+150) *0.783526 =-861.879
6 -1250(1100+150) *0.746215 =-932.769
7 -1400(1250+150) *0.710681 =-994.954
8 -1550(1400+150) *0.676839 =-1049.1
9 -1700(1550+150) *0.644609 =-1095.84
10 -1850(1700+150) *0.613913 =-1135.74
PV=Present value $-8,609
Therefore the amount you will need to set aside is $-8,609
Some of
the ways that you could find costumes for your film are the following:
<span>1. </span><span>It would first help to have actors that already look like they belong in the 1970’s. Having the authentic
look can help sell the costumes even more. </span>
<span>2.</span> Relying on second-<span> hand/low-budget
vintage stores would be the way to go.</span>
<span>3. </span><span>Go to a Fabric store or some place online and
order fabric to create, If there were a piece that
couldn’t be find and needed in the film.</span>