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
Transfer Pricing
dusya [7]

Answer:

Pembroke= $105,000

Multinomah= $120,000

Explanation:

Giving the following information:

The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division.

The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units.

Pembroke= 15,000*(82 - 75)= $105,000

Multinomah= 15,000*(90 - 82)= $120,000

3 0
3 years ago
3. What is meant by economy of scale? Why would costs be im pacted by the quantity of garment that is produced?
Anit [1.1K]

Answer:

Economies of Scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.

Explanation:

6 0
3 years ago
In the course of creating an effective business message, excellent business thinkers are most likely to
Irina18 [472]

Answer:

a) make well-reasoned conclusions and solutions ; & b) begin jotting down a rough draft right away to capture their ideas.

Explanation:

Effective Business message should be - complete, clear, concise, concrete, correct, courteous, coherent.

Rough draft is good for brainstorming & initial preliminary creation stage of business message. After having a bunch of ideas : its important to well arrange them in a coherent, clear way & giving complete, concise structure. This implies better understanding of conclusions, solutions.

4 0
3 years ago
On September 1, 2021, Southwest Airlines borrows $40.3 million, of which $8.6 million is due next year. Show how Southwest Airli
alexandr402 [8]

Answer and Explanation:

The presentation of the liabilities side of the balance sheet is presented below:

<u>                                                  Southwest Airlines </u>

<u>                                                    Liabilities side</u>

<u>                                                      Balance sheet</u>

Current liability

Current portion of the long term debt $8,600,000

Long term liability

Notes payable                                       $31,700,000   ($40,300,000 - $8,600,000)

Total liabilities                                      $40,300,000

4 0
3 years ago
Cash dividends of $83,126 were declared during the year. Cash dividends payable were $9,151 at the beginning of the year and $15
morpeh [17]

Answer:

option (b) $76,642

Explanation:

Data provided in the question:

Cash dividends declared = $83,126

Cash dividends payable at the beginning of the year = $9,151

Cash dividends payable at the end of the year = $15,635

Now,

Cash payment of dividends

= Cash dividends declared + Beginning cash dividends payable - Ending cash dividends payable

= $83,126 + $9,151 - $15,635

= $76,642

Hence,

the answer is option (b) $76,642

7 0
3 years ago
Other questions:
  • Sapporo K.K. was sued by a competitor in late 2017, and company management concluded that there was a 55 percent probability tha
    14·1 answer
  • Julie is trying to determine why there are such dynamic fluctuations in the conversion volume of her online website in the past
    6·1 answer
  • A player denies an opponent an obvious goal-scoring opportunity within that player's own penalty area by a challenge involving e
    10·1 answer
  • Which position is responsible for the direct management of all incident-related tactical activities?
    7·1 answer
  • You plan to go to school this summer.
    14·1 answer
  • Garland induces Jules to enter into a contract for the purchase of a Chef’s Burger House restaurant. Garland knowingly misrepres
    5·1 answer
  • The first step of added-value negotiation is:A. identify options.B. perfect the deal.C. design alternative deal packages.D. clar
    15·1 answer
  • Calculating and using Dual Charging Rates
    13·1 answer
  • a strategy tool that guideline resources allocation on the basis of market share and growth rate of single business units is
    6·1 answer
  • An example of a cost would be _____. <br> profit<br> revenue <br> fire <br> salaries
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!