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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

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You are attending college in the fall and you need to purchase a computer. You must finance the purchase because your parents wi
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3 0
3 years ago
Please help! :)
Slav-nsk [51]

Answer:

True.

Explanation:

Arbitration and mediation are two alternative ways of resolving legal conflicts, that is, they are alternatives to judicial litigation.

Thus, arbitration involves the selection of an impartial third party (similar to a judge), who will decide through an award who of the parties is right, basing his decision on law, morals, ethics or common sense.

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6 0
3 years ago
Listed below are some provisions that are often contained in bond indentures. Which of these provisions, viewed alone, would ten
monitta

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2. A given bond is subordinated to other classes of debt.

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timofeeve [1]

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