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Zielflug [23.3K]
3 years ago
8

Drought conditions spike demand during the summer to an annualized rate of 27,000 cans per year and the price rises to $12 per c

an. If the ordering cost per lot is 75 cents, what is the holding cost percentage
Business
2 answers:
OLga [1]3 years ago
4 0

Answer:

Holding cost percentage is 31%

wolverine [178]3 years ago
4 0

Answer:

Possible options are:

A. 3.1%

B. 1.81%

C. 31%

D. 18.1%

Answer is C. 31%

Explanation:

Any company's holding costs have four different elements:

1. The cost of the space to store your inventory. Costs include utilities, rent, property taxes and insurance.

2. The cost of handling the items. There are the work hours it takes staff to put them in storage any added security to keep them safe.

3. The loss to your company if the inventory sits too long. It either deteriorates or becomes obsolescent.

4. The capital cost of having money tied up in unsold inventory, unusable for anything else is usually the most significant part of your carrying costs.

The simplest formula skips over the heavy number crunching and goes with a rule of thumb. Calculate the value of your inventory, then divide it by 25 percent to get the carrying cost. If your inventory is worth, say, $650,000 then your inventory holding cost is $162,500.

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A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25. In
erik [133]

Answer:

b. ​Continue operating as the firm is covering all the variable costs and some of the fixed costs

Explanation:

A firm should shutdown operations if its price is less than average variable cost.

The price the firm sells is $15

Average variable cost is $10.

Price is greater than average variable cost in excess of $5.

The $5 covers some of the average fixed cost.

I hope my answer helps you

7 0
3 years ago
Biologists want to know how many fish are in a certain lake. on january 1, they removed 600 fish from the lake and tagged them.
Alenkasestr [34]
Biologists collected a random sample of 850 fish and 25 of them had been previously tagged. 850 : 25 = 34. It means that about 1/34 of all the fishes in the lake had been tagged. Therefore 600 * 34 = 20,400.
Answer: Based on this experiment, in the lake lives 20,400 fishes.
5 0
3 years ago
Accumulated Depreciation and Depreciation Expense are classified, respectively, as _____. (A) asset, contra liability (B) expens
andrew-mc [135]

Answer:

(D) contra asset, expense

Explanation:

Accumulated depreciation is a contra asset. When preparing ledger accounts, it will be credited hence will have a credit balance.It is also recorded in the balance sheet. On the other hand, depreciation expense is considered an operating expense. It is included as an item in the income statement when calculating a business's net income.

7 0
4 years ago
At July 31, Cullumber Company has this bank information: cash balance per bank $7,310, outstanding checks $715, deposits in tran
Luba_88 [7]

Answer:

$7,900

Explanation:

In Bank reconciliation statement the balances of Bank statement and the Balance from cash register is adjusted to calculated the adjusted cash balance for reporting at the end of the period. This is due to some outstanding deposits and Payment and other experiences which makes a difference between the bank statement balance and cash register balance.

Cash balance per bank = $7,310

Outstanding checks are those check which has been issued but not been presented in the bank yet. Deposit in transit is the amount of deposit which is pending in the clearing process.

Adjusted Balance = Cash Balance per bank - Outstanding Checks + Deposit in transit = $7,310 - $715 + $1,305 = $7,900

Bank charges are already adjusted in the cash balance per bank.

5 0
3 years ago
Which financial conflict of interest information must be made available by institutions on a public website or within five busin
Virty [35]

Answer:

The financial conflicts of interest which is available is of key or senior personnel on projects of the PHS-funded.

Explanation:

Financial conflicts of interest are present when the Significant Financial Interest affect directly or could affect, the professional judgement of the researcher when reporting, designing or conducting research.

Therefore, the information that could be provided or available by the institutions on the public websites or within the 5 days upon requesting is the senior or the key personnel PHS funded (which grants and the cooperative agreements funded by the PHS awarding) projects.

6 0
3 years ago
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