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Dafna11 [192]
3 years ago
9

Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review

system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level).
Annual demand 2,870 mufflers Ordering cost $65per order
Standard deviation of daily demand 6 mufflers per working day Service probability 76%
Item cost $31.00 per muffler Lead time 2 working days
Annual holding cost 22% of item value Working days 205 per year
Review period 16working days
a. What is the optimal target level (order-up-to level)? (Use Excel's NORMSINV) function to find the correct critical value for the given
α-level. Do not round intermediate calculations. Round ''z'' value to 2 decimal places and final answer to the nearest whole number.)
b. If the service probability requirement is 97 percent, the optimal target level will:
_____Increase
_____Decrease
_____Stay the same
Business
1 answer:
forsale [732]3 years ago
7 0

Answer:

A.) 270 units (b.) Increase

Explanation:

Given the following :

Annual demand (A) = 2870

Working days = 205

Review period (P) = 16 working days

Lead time (L) = 2 working days

Standard deviation (σ) = 6 per working day

Service probability = 76%

Therefore, z = NORMSINV(0.76) = 0.71

Average demand (D) = 2870 / 205 = 14

Optimum target level, (S) is given by the relation:

D×(P+L) + z×σ×√(P+L)

14×(16+2) + 0.71×6×√(16+2)

(14×18) + 4.26 × √18

252 + 4.26*4.242

252 + 18.07

= 270.07 units = 270 units

B) If service probability increases to 97%, Z will automatically increase, hence a corresponding increase in the optimal target level.

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Corporation purchased inventory costing and sold ​% of the goods for . All purchases and sales were on account. later collected
Likurg_2 [28]

Answer:

1.

A. Dr Inventory 180,000

Cr Accounts Payable 180,000

B. Dr Accounts Receivable 235,000

Cr Sales Revenue 235,000

C. Dr Cost of Goods Sold 135,000

Cr Inventory 135,000

D. Dr Cash 70,500

Cr Accounts Receivable 70,500

2. BALANCE SHEET $45,000

INCOME STATEMENT $100,000

Explanation:

1. Preparation of the journal entry

A. Preparation of the journal entry for the purchase of inventory.

Dr Inventory 180,000

Cr Accounts Payable 180,000

(Being to record the purchase of inventory)

B. Preparation of the journal entry for sale

Dr Accounts Receivable 235,000

Cr Sales Revenue 235,000

(Being to record sale revenue)

C. Preparation of the journal entry to

Record the cost of goods sold portion of the sale.

Dr Cost of Goods Sold 135,000

Cr Inventory 135,000

(75%*180,000)

(Being to record cost of goods sold portion of the sale)

D. Preparation of the journal entry to Record the collection of 30% of the accounts receivable.

Dr Cash 70,500

Cr Accounts Receivable 70,500

(30%*235,000)

(Being to record the collection of 30% of the accounts receivable)

2. Calculation to Determine what the company will report on the balance​ sheet

BALANCE SHEET

Current Assets:

Inventory $45,000

(180,000-135,000)

Therefore the company will report $45,000 on the balance​ sheet

Calculation to Determine what the company will report on the income​ statement:

INCOME STATEMENT

Sales revenue 235,000

Less Cost of Goods Sold 135,000

Gross profit $100,000

Therefore the company will report $100,000 on the income​ statement

6 0
3 years ago
georgia has an investment portfolio of five stocks. two of the stocks are energy companies, and three are computer manufacturers
erica [24]

Georgia has an investment portfolio of five stocks. Types of risk is georgia's portfolio subject is <u>unsystematic risk</u><u>, because there are only five stocks </u><u>across two sectors</u><u>.</u>

Option D is correct.

<h3>What's an effective portfolio?</h3>

An effective portfolio is either a portfolio that offers the loftiest anticipated return for a given position of threat, or one with the smallest position of threat for a given anticipated return. The line that connects all these effective portfolios is the effective frontier.

<h3>What's unsystematic threat?</h3>

Unsystematic threat is also known as specific threat, meaning the troubles that are unique to a single company or assiduity. still, these pitfalls don't only do one establishment at a time. For illustration, a poor director might pose a specific threat to a single company's stock price.

Learn more about unsystematic risk:

brainly.com/question/17053068

#SPJ1

6 0
1 year ago
You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $ 5 com
kumpel [21]

Answer:

5.34 months

Explanation:

Pay back period calculates how long it takes for the amount invested in a project to be recovered from the cumulative cash flows.

Payback period = amount invested / cash flows

$5000 / $ 935 = 5.34 months

I hope my answer helps you

7 0
3 years ago
Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was conside
uysha [10]

Answer:The new ads suggest that Head & Shoulders has been

rebranded -True

Explanation:Definition: Rebranding is a marketing strategy which involves giving a brand or product or company a facelift by changing the corporate image of the particular object by giving it a new name, symbol, or change in design especially for an already-established brand. This helps to create a different face for a brand or product from its competitors or from imitations in the market.

Here, procter and Gamber rebranded it's head and shoulders to give it a facelift thereby attracting it's already existing customers and intending purchasers.

7 0
3 years ago
According to Miles and Snow, a company that operates in at least two different product-market areas in which one product is stab
Kruka [31]
It is B) Reactors
Because they operate
5 0
3 years ago
Read 2 more answers
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