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mezya [45]
4 years ago
9

Effective controls relevant to the efficiency of purchases will result in proper evaluation of the time for ordering merchandise

. When making this evaluation, the purchasing company should give primary consideration to
Business
1 answer:
ch4aika [34]4 years ago
3 0

Answer:

The trade-off between the cost of owning and storing excess merchandise and the risk of loss by not having merchandise on hand.

Explanation:

Effective management of costs when purchasing inventory for sale must be well planned by a business.

Economic order quantity calculation is used to minimise cost of storing excess merchandise and cost of ordering merchandise.

The model is based on assumption of constant demand for goods and effectively avoids stock outs. This is done by using probability to estimate the loss that will be incurred by not having stock on hand.

This consideration between storage cost and cost of not having stock will guide the business to make stock ordering choices that will minimise cost

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A U.S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter
grandymaker [24]

Answer:

5.52%

Explanation:

Cost of Furniture= $150,000

discount= 5.25% (120-day note)

To get the exporter's true effective annual financing cost, we have:

150,000*[1-(0.0525*120/360)] = 147,375

=(150,000/147,375) 365/120-1 = 5.52%

Therefore, the exporter's true effective annual financing cost is 5.52%

6 0
3 years ago
1. The Cozy Company manufactures slippers and sells them at $ 10 a pair. Variable manufacturing cost is $ 5.75 a​ pair, and allo
nadya68 [22]

Answer:

(b) $ 43,750 ​increase

Explanation:

The computation of the effect on operating income is shown below:

= Contribution margin per unit × special order

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $7.50 - $5.75

= $1.75

And, the special order is of 25,000 pairs

Now put these values to the above formula  

So, the value would equal to

= $1.75 × 25,000 pairs

= $43,750

The fixed cost would remain unchanged.

6 0
3 years ago
Equired: 1-a. the marketing manager argues that a $10,000 increase in the monthly advertising budget would increase monthly sale
Elza [17]
Fixed expenses are $76,000 per month and the company is selling 4,600 units per month.

3 0
3 years ago
a process with a one-sided specification has a Cpk of 0.22. What is the percentage of the production falls beyond the specificat
mihalych1998 [28]

Answer:

≈ 25%

Explanation:

Given data:

Cpk = 0.22

Determine The percentage of production that falls beyond the specification limit ( assuming normal distribution )

first calculate the value of Z ;

Cpk = Z /3

hence Z = Cpk * 3 = 0.22 * 3 = 0.66

The percentage of the production can be determined by

( 1 - value obtained from the standard normal table for the value of Z =0.66 )

1 - 0.7454 = 0.2546  ≈ 25%

8 0
3 years ago
Initial Outlay -$5,000 Year 1 $3,000 Year 2 $3,500 Year 3 $3,200 Year 4 $2,800 Year 5 $2,500. a. What is the PI if the discount
kkurt [141]

Answer:

a. What is the PI if the discount rate is 20%?

profitability index = present value of cash flows / initial outlay

PI = $9,137.41 / $5,000 = 1.83

b. What is the NPV if the discount rate is 20%?

NPV = -$5,000 + $9,137.41 = $4,137.41

c. What is the IRR if the discount rate is 20%?

the discount rate is irrelevant when you are calculating the IRR, since the IRR is the discussion rte at which the NPV = $0

IRR = 55.23%

Explanation:

Initial Outlay -$5,000

Year 1 $3,000

Year 2 $3,500

Year 3 $3,200

Year 4 $2,800

Year 5 $2,500.

7 0
3 years ago
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