1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olganol [36]
3 years ago
9

Cycles de Oro produces 120,000 high-tek bikes a year and orders the brake assembly from IKON for $15.40 each. The order cost is

$84 and Cycles estimates their inventory carrying costs are 15%. What is their total ordering cost per year?
Business
1 answer:
Ket [755]3 years ago
3 0

Answer:

$3,412

Explanation:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{120,000}\times \text{\$84}}{\text{\$2.31}}}

= 2,954 units

The carrying cost is

= $15.40 × 15%

= $2.31

The number of orders would be equal to

= Annual demand ÷ economic order quantity

= 120,000 ÷ 2,954 units

= 40.62 orders

Now The total cost of ordering cost is

Ordering cost = Number of orders × ordering cost per order

= 40.62 orders × $ 84

= $3,412

You might be interested in
Economics is the social science that tries to explain
Norma-Jean [14]
C I am pretty sure goodluck
8 0
3 years ago
Four ways in which the kruger national park combats rhino poaching
alina1380 [7]
As I remember it correctly four strategies <span>in which the kruger national park combats rhino poaching sound like that:
*Restricted trade in rhino horn;
*Unrestricted trade in rhino horn;
*Status Quo;
*Demand reduction.</span>
5 0
3 years ago
The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of retur
Andreyy89

Answer:

a. 14.75%

b. Under priced

Explanation:

The computation for the required rate of return is shown below:

a. Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 6% + 1.25 × (13% - 6%)

= 6% + 1.25 × 7%

= 6% + 8.75%

= 14.75%

b. As the required rate of return comes 14.75% and the required return is 16% so it is under priced as expected return is more than the required return

3 0
3 years ago
Consider the market for 7-eleven slurpees. In a market economy only those consumers who are willing and able to pay for Slurpees
Natalka [10]

Answer:

When we take Slurpees, these are labelled under luxury. This is not the basic need of any human being to drink Slurpees in order to quench his or her thirst. This can't be categorized as a basic, primary or biological need. Water is considered very for for this purpose and we even can't survive biologically without water, whereas, we can very happily without Slurpees. More specifically, we can live definite more happy and healthy without drinking these carbonated drinks which are not good for any human's health, and this facts have been proven by medical science in much finer details. These drinks, sometimes, can kill humans as well, damaging their stomach directly. If this was the basic need, then organizations might have offered it instead of giving employees salary and monetary rewards.

5 0
3 years ago
In March 2012, Yoshiro Inc.. decided to retire an outstanding bond issue before maturity. The coupon rate on the bond issue was
natali 33 [55]

Answer:

  • b. Cash from Financing Activities  
  • d. Bonds Payable
  • e. Net Income

Explanation:

Bonds are a form of long term debt and in the cashflow statement this goes to the Financing section. A retirement of bonds would reduce cash and this would come from the Financing activities.

Bonds Payable will also decrease because the bond that is being retired will reduce the number of bonds payable that the company has to pay off.

Finally the Net income will reduce as well to reflect the loss on bond retirement. The bonds were issued at a discount owing to interest rates being higher than the coupon rate in 2011 but on the day the bonds were retired they were selling at a premium with interest rates at 4%. The company paid more than they received and this loss will reduce the net income.

3 0
3 years ago
Other questions:
  • Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,3
    5·1 answer
  • Union Pacific Railroad reported net income of $770 million in 1993, after interest expenses of $320 million. (The corporate tax
    15·1 answer
  • Jeff can use the ____keys to copy the phrase. After copying the phrase, he can use the _______keys to paste the data.
    15·1 answer
  • The Petit Chef Co. has 11.6 percent coupon bonds on the market with ten years left to maturity. The bonds make annual payments a
    8·1 answer
  • Kenisha decided to write her persuasive speech on "human cloning." she didn't feel comfortable using internet sources and so rel
    13·1 answer
  • ________ theory focuses on people evaluating their treatment by the organization relative to the treatment of others.?
    6·1 answer
  • While boating one afternoon with his father, ernesto jr. was given a gift certificate by the local coast guard representative fo
    14·1 answer
  • Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to
    12·1 answer
  • Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to pay for a glass of lemonade
    6·1 answer
  • A portfolio is composed of two securities, Stock X and Stock Z. Stock X has a standard deviation of returns of 35%, while Stock
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!