Answer:
"E "
Explanation:
Just in time inventory is an inventory management system where inventory required for production are ordered at the point of production.
This practice helps to maximize profit as investment on inventory carriage and storage are minimized , aiding an improved working capital management.
It is of importance that machine break down is avoided and there is a reliability of man power in order to avoid operation down time when there is a demand.
Also , there must be a solid arrangement with supplier for it to be effective.
Answer: three times as large
Explanation:
Economic order quantity will be calculated as follows:
EOQ = ✓(2DS/H)
D = Demand in units
Here S = Ordering cost = $10
H = Holding cost
Since S = $10
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 10 × D/ H)
= ✓(20D/H)
Since we're to increase the order cost from $10 per order to $90 per order, then EOQ will be:
Since S = $90
Therefore, EOQ will be:
= ✓(2DS/H)
= ✓(2 × 90 × D/ H)
= ✓(180D/H)
3✓20DH
The revised EOQ will then be 3 times as large.
Answer:
b-the costs incurred to process the units to this point
Explanation:
Since in the question it is given that the company want to decide whether to sell partially completed goods or should incurred extra cost in order to finished the goods and sells them as a completed unit
So there should be the decision regarding selling price for the units that are completed, the selling price for the units that are partially completed and the cost i.e to be incurred for finishing the units
Answer:
D) $4,550
Explanation:
Contribution margin = Net Sales - Total Variable cost
Net sales $6,000
Les: Variable costs:
Cost of merchandise sold $1,000
Operating expenses <u> $450 </u>
Contribution Margin $4,550
All other costs are fixed cost which are not used in contribution margin calculation.
So the correct answer is D) $4,550.
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