Answer:
The correct answer is: Goblal Outsourcing
Explanation:
Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's employees and staff.
Outsourcing can help businesses reduce labor costs significantly. The outside organizations typically set up different compensation structures with their employees than the outsourcing company, enabling them to complete the work for less money. In addition to cost savings, companies can employ an outsourcing strategy to better focus on the core aspects of the business.
Outsourcing can increase economic efficiency. When highly skilled people can outsource lower-value tasks and spend more time at high-value tasks, businesses tend to benefit.
It is crucial to maintain open and constant communication with the outside company. Control is key to success, so the quality of the product does not diminish.
When outsourcing to a foreign country, it is called international outsourcing or global outsourcing.
The EOQ is 980 units and should reduce the fixed ordering cost to an amount of $62.50.
<u>Explanation:</u>
a)
Annual demand=Qty per mth multiply with 12 = 1000 multiply with 12 =12000
Annual demand in USD, A= 12000 multiply with USD 100 (cost of each part) = USD 1200000
Preparation cost, P= 4 hrs changeover time multiply with USD 250 per hr = USD 1000
Annual holding cost, I = 25% = 0.25
EOQ in USD= Root over (2 multiply with A multiply with P divide by I ) = USD 9.79 multiply with 10000 = USD 98000
EOQ in nos. = USD 98000 divide by USD 100 (cos of each part) = 980 units
b) Q = 980 divide by 4 = 245
In this case, annual carryring cost, C = EOQ 980 by 4 multiply with 0.5 multiply with Unit cost USD 100 multiply with 0.25 = USD 3062.50
Annual demand, D = 1000 per month multiply with 12 = 12000
Ordering cost = C multiply with 245 / D = USD 62.50
Making an impulse purchase.
Answer:
The correct answer is $176.
Explanation:
Giving the following information:
The following cost data per television are based on full capacity of 12,000 televisions produced each period:* Direct materials = $75* Direct labor = $55* Manufacturing overhead (75% variable and 25% unavoidable fixed) $48.
The only selling costs that would be incurred on this order would be $10 per television for shipping.
Because it is a special offer and there is unused capacity we will not have into account the fixed costs.
Unitary costs= 75 + 55 + (48*0.75) + 10= $176
The minimum price is the one that covers the variable cost. In this case $176.
Minimum price= $176
Answer:
XYZ is not a good investment as compared to Bank because it has lower per year interest than the bank.
Explanation:
Bank offers 8% per year
To compare the investment we should calculate the holding period return of the share which is as follows
Holding period return = ( Dividend + Change in price ) / Initial price )
Holding period return = ( $5 +($120 - 110) ) / $110 ) = ( $5 + $10 ) / $110 = 0.1364 = 13.64%
Return per year = 13.64% / 3 = 4.5% per year
