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
A monopolist sells 6 units of a product per day at a unit price of $15. if it lowers price to $14, its total revenue increases b
grandymaker [24]
<span>A monopolist sells 6 units of a product per day at a unit price of $15. if it lowers price to $14, its total revenue increases by $22. this implies that its sales quantity increases by: 8 units. 

To solve for the original sales amount: (6 units)($15) = $90
Next find the new unit amount: (8 units)($14) = $112

The difference between these two is a $22 sales increase which means to have the difference in sales be $22 there were 8 units sold instead of 6 units. 

</span>
5 0
2 years ago
Following is information on an investment considered by Hudson Co. Assume the investment has a salvage value of $20,000. The com
zalisa [80]

Answer:

net present value is

$228,652.29-$200,000.00

=$28,652.29.

Explanation:

Net cashflows

Year 1= 100000

Year 2= 90000

Year 3= 95000 (75000+ 20000)

Totals= 285000

Present value at 12%

Formula for present value=

1/(1+r)^n

where r= interest rate

n= number of years

Year 1=1/(1+0.12)^1 =0.8929

Year 2=1/(1+0.12)^2= 0.7972

Year 3=1/(1+0.12)^3 =0.7118

Present value of net cash flows =

Present value × net cash flows.

Year 1= 0.8929 × 100000= $89,285.71

Year 2=0.7972 ×90000= $71,747.45

Year 3=0.7118×95000= $67,619.12

Totals = $228,652.29

Amount invested= $(200,000.00)

Net present value (NPV) is referred to as the difference between the present value of cash inflows and the present value of cash outflows over a period of time. Net Present Value is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.

Therefore, net present value is

$228,652.29-$200,000.00

=$28,652.29.

7 0
3 years ago
use the rule of 72 to calculate how long it will take for your money to double if it's earning 6% in interest
marissa [1.9K]
It would take by my calculations around 16 yrs but that is just an hypothesis

<span />
7 0
3 years ago
What is at saturated market like for sellers?
garri49 [273]

The meaning of being saturated or reaching the point of saturation in the business terms is the time in which a market does not generate any more demand for a certain market. This may be due to increase competition, decrease need or the product became unusable. For sellers, saturation means two things, first is that this is the chance for you to give your business a makeover. You can level up your products or service or try a new strategy for your business. The endpoint is that you need to diversify so that the customers will not get tired of the same product of service all over again. If you observed that with all the things you possibly did to keep the product or service growing, you haven't seen any change the market demand then the second thing you may want to do is to stop your business because it will only be a waste of time, research and money.
5 0
2 years ago
Cosmetics makers focus on the unique needs of customers of different ages. The cosmetics makers recognize the importance of ____
solniwko [45]

Answer:

market segments

Explanation:

Market segments -

It refers to the portion of people , who have some common features , are referred to as market segment .

Where the market is segmented on the basis of some uniques characteristics in order to stand out in the competitive world .

Hence , from the given scenario of the question.

Cosmetics are designed according to the particular age age group , showcasing to be an example of market segments.

8 0
2 years ago
Other questions:
  • Loretta went to a store to buy thermal underwear. The underwear had been featured in an advertisement for $24.99 a pair. She was
    9·1 answer
  • The AFL represented: a. A Knights of Labor committee that handled the strategic planning duties and a group that supported the b
    9·1 answer
  • businessYou are a Slovak immigrant steelworker in Pennsylvania. What reasons would you have for joining a union? Describe your h
    10·1 answer
  • Explain why a city council meeting to discuss hiring more city employees must be open to the public, while a meeting to discuss
    11·1 answer
  • A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and layi
    13·1 answer
  • Which of these items is not considered to be a want?
    14·1 answer
  • About 35 percent of online consumers are interested in customizing product features or in purchasing build-to-order products tha
    11·1 answer
  • Quantitative easing is the Question 8 options: gradual release of money into the money supply through open market operations. ta
    7·1 answer
  • According to recent data, only 36 percent of Uber's current employees are women. How do you think this situation helped perpetua
    9·1 answer
  • Milton Friedman helped to establish the economic theory of monetarism. Which statement best describes the idea of monetarism
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!