Ow did easy consumer credit help the u.s. economy during the early 1920s?

Bell Computers purchases integrated chips at â€‹$350 per chip. The holding cost is â€‹$35 per unit perâ€‹ year, the ordering cos

valentina_108 [34]

Answer:

<h3><u>When holding costs are $35 per unit</u>,</h3>

1.The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a fixed holding cost) is <u>182 units</u>.

2. At the chosen level of quantity, discount, and using the fixed holding cost, the total annual cost for Bell computers to order, purchase, and hold the integrated chips is <u>$1,585,898</u>.

<h3><u>When holding costs are 10% of purchase price per unit,</u></h3>

1.The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a fixed holding cost) is <u>189 units</u>.

2. At the chosen level of quantity, discount, and using the fixed holding cost, the total annual cost for Bell computers to order, purchase, and hold the integrated chips is <u>$1,585,546.</u>

<h3>When holding costs are $35 per unit,</h3>

We follow these steps to arrive at the answer:

1. We have

Ordering Costs per order $119

Holding Cost per unit $35

Demand per month 405 units

Demand per year is $405*12 = 4860 units$

Since the most cost-effective order quantity is the Economic Order Quantity (EOQ), we compute the EOQ

$\mathbf{EOQ = \sqrt{\frac{2SD}{H}}}$

where

D is demand per year

S is the Ordering cost per order

H is the holding cost per unit

Substituting the values we get,

$EOQ = \sqrt{\frac{2*(405*12)*119}{35}}$

$EOQ = \sqrt{33048}$

$\mathbf{EOQ = 181.7910889 \approx 182 units}$

2. The annual costs of ordering, purchasing and holding the integrated chips is the sum of the cost of ordering, purchasing and holding the integrated chips.

Since the EOQ at 182 units falls in the second slab of Rich Blue Manufacturing, Bell computer can purchase chips at $325 per unit

Cost of purchasing the chips $\mathbf{405*12*325 = 1579500}$

Number of orders to placed $\frac{Annual Demand}{EOQ}$

Number of orders to placed $\frac{405*12}{182}$

Number of orders to placed $\mathbf{26.703 \approx 27 orders}$

Cost of orders $Number of orders * Cost per order$

Cost of orders $\mathbf{27 * 119 = 3213
}$

Holding Costs $\frac{EOQ}{2} * Holding cost per unit$

Holding Costs $\frac{182}{2} * 35$

Holding Costs $\mathbf{3185
}$

Total annual costs $\mathbf{1579500 + 3213 + 3185 = 1585898}$

<h3>When holding costs are 10% of purchase price per unit,</h3>

1. We need to calculate the EOQ, which holding cost at each purchase price

$EOQ_{350} = (2*(405*12)*119)/(350*0.10) \approx 182 units$

$\mathbf{EOQ_{325} = (2*(405*12)*119)/(325*0.10)\approx 189 units}$

$EOQ_{300} = (2*(405*12)*119)/(300*0.10)\approx 197 units$

Since the EOQ lies between 100 and 199 units in all the three costs, Bell Computers can purchase the units only at $325 per unit, so its holding cost will be 10% of $325, which is $32.50 per unit.

2.2. The annual costs of ordering, purchasing and holding the integrated chips is the sum of the cost of ordering, purchasing and holding the integrated chips.

Since the EOQ at 189 units falls in the second slab of Rich Blue Manufacturing, Bell computer can purchase chips at $325 per unit

Cost of purchasing the chips $\mathbf{405*12*325 = 1579500}$

Number of orders to placed $\frac{Annual Demand}{EOQ}$

Number of orders to placed $\frac{405*12}{189}$

Number of orders to placed $\mathbf{24.762 \approx 25 orders}$

Cost of orders $Number of orders * Cost per order$

Cost of orders $\mathbf{25 * 119 = 2975 }$

Holding Costs $\frac{EOQ}{2} * Holding cost per unit$

Holding Costs $\frac{189}{2} * 32.5$

Holding Costs $\mathbf{3071.25
}$

Total annual costs $\mathbf{1579500 + 2975 + 3071.25 = 1585546.25
}$

7 0

3 years ago

A company is about to go public with an ipo loading. (initial public offering) and the company founders keep a significant porti

gavmur [86]

A company is about to go public with an IPO (initial public offering) and the company founders keep a significant portion of the company's stock. This is an example of signaling.

A public offering in which shares of a firm are sold to institutional investors and typically also to retail investors is known as an initial public offering (IPO) or stock launch. Typically, one or more investment banks will underwrite an IPO and coordinate the shares' listing on one or more stock exchanges.

Underpricing in the IPO market as a signal Investors are aware that only the best can recover the cost of this signal from later issues, which is why some organizations with the best prospects decide it is preferable to indicate their type by underpricing their initial issue of shares.

IPOs assist businesses in raising capital without turning to banks or other financial institutions, which could impose exorbitant interest rates on loans. Additionally, it enables current investors to exit the business without paying capital gains tax.

To know more about initial public offering refer to: brainly.com/question/3068229

#SPJ4

7 0

2 years ago

An analytical tool used in six-sigma quality improvement programs is which of the following? A. LeadershipB. Continuous improvem

madam [21]

Answer:

E. Checksheets

Explanation:

Check Sheets

It is a form of document , which is used to collect data and information in the real time , at the very location , where it is generated .

The data collected can be qualitative and even quantitative in nature .

In case the data or the information is quantitative , then the check sheet can also be called as a tally sheet .

3 0

3 years ago

In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction mu

adell [148]

Answer:

Correct option is (B)

Explanation:

In accounting, double entry book keeping is followed as every financial transaction has dual effect on the books of accounts. It starts with the accounting equation which stated:

Assets = Liabilities + Stockholder's Equity

If there is an increase in assets, there has to be a subsequent increase in either liability or stockholder's equity.

Every transaction is debited in one account and credited in some other account.

For example Depreciation for the year is $2,000. Depreciation expense account is debited by $2,000 and accumulated depreciation account is credited by $2,000.

Since Sandra recognizes that an effect on asset will have a simultaneous effect on either liability or equity, she is following double entry bookkeeping.

5 0

4 years ago

Identify the main source areas and explain two key push factors associated with the early twentieth-century peaks. Discuss how c

VikaD [51]

Explanation:

Southern and Eastern Europe became the major spring regions. Some of the big driving forces is the World War I, primarily in Europe, which enabled immigrants to join the United States. The economic conditions were another significant consideration as the prospects for jobs in the war declined.

As reported, when migrants went to the USA, there were many possibilities for jobs. The American automotive industry celebrated of the first World War. War-time goods have been pursued, and America has become one of Britain's major food producers, and has provided refugees a wide range of jobs.

3 0

3 years ago