Answer:
(a):Annual demand = 10 packages per day*260 days per year = 2600 packages per year.
H = $1 and S = $10.
Thus Order quantity = (2*2600*10/1)^0.5 = 228 packages
(b): Total annual inventory control cost = Q/2*H + D/Q*S
= 228/2*1 + 2600/228*10
= 114 + 114.03
= 228.03
(c): Yes both annual ordering costs and holding costs are equal at $114.
(d): In case of order quantity of 100 packages the cost will be = 100/2*1 + 2600/100*10
= 50 + 260
= 310.
Thus the cost figure of $310 in case of 100 packages is more than the cost of $228.03 when 228 packages are ordered. Hence I will recommend that the office manager use the optimal order quantity instead of 100 packages.
Answer:
Stock price = $74.26
Explanation:
<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative (benchmark) price- earning (P/E) ratio</em> .
The ratio relates the price of a stock to its earning. A stock with a higher P/R indicates a high potent for growth.
Price of stock =Earnings per share( EPS) × benchmark P/E ratio
The appropriate comparative price earnings ratio in the question has been given as 18.8 times.
DATA-
EPS- 3.95
PE- 18.8
Stock price = 3.95 × 18.8= $74.26
Stock price = $74.26
Answer:
d. strategic alliance.
Explanation:
A strategic alliance -
It is the practice between any two companies , which gives both of them some mutual profit by working on a common project , is known as a strategic alliance .
The idea behind starting a strategic alliance is to improve or expand the company in the upcoming market , this can be a short term or a long term agreement plan .
This agreement tends to benefit both the company .
Answer:
(a) 2
(b) 2.25
(c) 12.5%
Explanation:
To solve this question we need to remember that
(a) 10 persons produce 160 valves in 8 hours, this implies a productivity of 2=160/(8x10)
(b) 2.25= 180/(8x10)
(c) Percentage change is given by (2.25-2)/2=.125
Specific, measurable, achievable, relevant, time bound