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Mariana [72]
3 years ago
15

A creamery shop sells its special ice cream for $4.50 a quart. It costs them $3.00 a quart to make it. The daily demand for this

flavor is normally distributed with a mean of 35 quarts and a standard deviation of 4 quarts. Unsold ice cream is sold each day to a local restaurant at $1.50 per quart. What is the service level and corresponding optimal stocking level?
Business
1 answer:
jenyasd209 [6]3 years ago
7 0

Answer and Explanation:

The computation of the service level and the corresponding optimal stocking level is shown below:

Given that

Selling price = SP = $4.50

Cost price = CP  = $3.00

So,

Salvage value =  V  = $1.50

Average daily demand (d) = 35 quarts

The  standard deviation of daily demand  = 4 quarts

based on the above information

Overage cost = (Co) is

= CP - V

= $3.00 - $1.50

= $1.50

Now

Underage cost= (Cu)

= SP - CP

= $4.50 - $3.00

= $1.50

So,  

Service level is

= Cu ÷ (Co + Cu)

= 1.50 ÷ (1.50 + 1.50)

= 1.50 ÷ 3.00

= 0.50

= 50%

Now

At 50 % service level, the value of Z is 0

So,

Optimal stocking level is

= d + Z × standard deviation

= 35 + (0  × 4)

= 35 + 0  

= 35 quarts

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The answer is The amount of VAT payable to both the business are:

VAT payable by Querrey Inc. is $11,16,000

VAT payable by Ronno Inc. is $3,72,000

What is the computation of VAT payable?

  • For Querrey Inc.Sales Revenue = 12, 400, 000units* $9F = $11, 16, 00, 000
  • VAT on Sales = $11, 16,00,000* 3%
  • $33,48,000
  • VAT on Material 12, 400, 000units * $6: = $22, 32,000
  • For Ronno Inc.Sales Revenue = 12, 400, 000units $10= $12, 40, 00, 000
  • VAT on Sales = $12, 40,00,000* 3%
  • $37,20,000
  • VAT on Purchase = 12,400,000units* $9= $33, 48,000

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8 0
1 year ago
. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribu
zzz [600]

Answer and Explanation:

The preparation of the contribution margin income statement for the year is presented below:

Sales (45,000 units × $16 per unit) $720,000

Less: variable cost (45,000 units × $180,000 ÷ 30,000 units) -$270,000

Contribution margin $450,000

Less: fixed cost -$300,000

Net operating income $150,000

3 0
3 years ago
Striking Apparels has launched its new stock of summer wear. It plans to target shoppers between the ages of twenty and thirty t
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Answer:

"D"

Explanation:

Daniel belongs to the <u>Marketing</u> department of Striking.

4 0
3 years ago
You are asked to recommend whether a firm should make or purchase product A. The following are data concerning the two options.
Alexxandr [17]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

For the purchase​ option:

Buying price= ​$22 per unit.

For the make​ option:

Weekly rental payment of ​$30,800

The firm also has to hire five operators to help make product A. Each operator works eight hours per​ day, five days per week at the rate of ​$14 per hour.

The material cost for the make option is ​$15 per unit of product A.

A) We need to find the number of units that makes the unitary fixed costs= $7

Weekly rental= 30800

Direct labor= ($14*8 hours*5workes)*5 days= 2800

Total fixed costs= $33,600

Unitary fixed costs= total fixed costs/ Q

7=33600/Q

Q= 4800 units

B) Now Q= 6600

Buy= 6600*22= $145,200

Make= 6600*15 + 33600= $132,600

3 0
3 years ago
Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.Estimated MOH $238,000A
Ulleksa [173]

Answer:

B.) $11.90

Explanation:

Predetermined manufacturing overhead rate are based on the estimates made by the company.

So the calculation should be:

Estimated MOH of $238,000<em> divided by</em> Estimated Machine Hours of 20,000.

Giving us the result of $11.90

(238,000 / 20,000 = 11.90)

7 0
3 years ago
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