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
tester [92]
3 years ago
15

A company uses 2,500 per year of a certain subassembly that has an annual holding cost of $40 per unit. Each order placed costs

$150. The company operates 250 days per year and it has found that an order must be placed with the supplier 5 working days before it can expect to receive that order. For this subassembly, find: (a) the economic order quantity (Round answer to nearest whole number). (b) the annual holding cost. (c) the annual ordering cost. (d) the reorder point.
Business
1 answer:
garri49 [273]3 years ago
6 0

Answer:

a. 136.93 units

b. $2,783.60

c. $2,783.63

d. 60 units

Explanation:

a. 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{2,500}\times \text{\$150}}{\text{\$40}}}

= 136.93 units

b. The annual holding cost is

= Economic order quantity ÷ 2  × holding cost per order

= 136.93 units ÷ 2 × $40

= $2,738.60

c. The annual ordering cost is

= Annual demand ÷ economic order quantity  × ordering cost per order

= $2,500 ÷ 136.93 units  × $150

= $2,738.63

d. The reorder point is

= Demand × lead time + safety stock

where, Demand equal to

= Expected demand ÷ total number of days in a year

= 2,500 ÷ 250 days

= 10

So, the reorder point would be  

= 10 × 6 + $0

= 60 units

We simply applied the above formulas

You might be interested in
A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fall
Scorpion4ik [409]

Answer:

$2,600

Explanation:

Calculation of the value of the company's inventory at the lower of cost or market.

Current FIFO inventory ×Net realizable value

Where,

Current FIFO inventory= 200 units

Net realizable value $13 per unit

Therefore,

200 units *$13 per unit = $2,600.

Lower cost of market can be said to mean that the inventory cost at either the purchase cost or replacement value .

Bases on the information given in the question, replacement cost is lower or lesser than the purchase cost which is why the inventory units are been cost at the replacement value of $13 each.

6 0
2 years ago
Suppose there an increase in production cost decreases the supply of wheat, such that less wheat is supplied at each price level
pickupchik [31]
Increases. hope this helps
8 0
3 years ago
Thomas purchased 200 shares of stock A for ​$23 a share and sold them more than a year later for $ 19 per share. Be purchased 60
Delicious77 [7]

Answer:

Capital gain tax = $1,540.

Explanation:

As per the data given in the question,

For stocks of A  

Profit = (selling price - purchasing price) × units

= ($19 - $23) × 200

= -$800

For stocks of B  

Profit = ($57-$41) × 600

= $9,600

Total profit = profit for stock A + profit for stock B  

= -$800 + $9,600

= $8,800

Therefore, capital gain for both year = $8,800

Tax rate = 35%

Capital gain tax = Capital gain × Tax rate

= $8,800 × 35%

=$3,080

As share holds for more than a year,

So, Capital gain tax = $3,080 ÷ 2 = $1,540.

5 0
2 years ago
Use one of your research accidents specifically and briefly explain it.a. Determine if this type maintenance-related error happe
EastWind [94]

Answer: Accident research covers a very wide field. In this paper different models for accident research are presented; ie the behavioral, the epidemiological and the systems model. Different definitions of accidents are discussed, and particular attention is given to the restrictions on research as implied by the different definitions. A method for near-accident reporting is presented as a way of activating safety work and extending cooperation concerning industrial safety measures. The Dirty Dozen refers to twelve of the most common human error preconditions, or conditions that can act as precursors, to accidents or incidents. These twelve elements influence people to make mistakes.

. Lack of communication  

5. Complacency  

9. Lack of knowledge  

2. Distraction  

6. Lack of teamwork  

10. Fatigue  

3. Lack of resources  

7. Pressure  

11. Lack of assertiveness  

4. Stress  

8. Lack of awareness  

12. Norms

B.How the Acts can help in this Life -  Track Your Time, Determine Your Priorities ,Set Specific Goals ,Schedule Scrupulously,Establish Boundaries .

C. What is Professionalism in the Workplace?

Professionalism has to do with the way a person conducts himself or herself in the workplace. An individual who shows consideration and respect for others demonstrates a commitment to professionalism. Likewise, a person who keeps his or her word, demonstrates loyalty, and exceeds expectations is demonstrating professionalism.  

There are four key elements that demonstrate a professional attitude. These are:  

Treat other with respect  

Keep your word  

Be loyal  

Exceed expectations

Explanation:

3 0
2 years ago
Tara has started a new job and has been assigned to work on a team. She is anxious about getting along with her new team members
kap26 [50]
B. Avoid gossip
Getting along with team means being yourself and not gossiping with others.

C is not the answer because you want to make sure you are aware of complaints.
D is not the answer because when you give gifts, sometimes people can take advantage of you because they know you want to get along with them
A is not the answer because to get along and work together you have to share ideas
6 0
3 years ago
Read 2 more answers
Other questions:
  • Porter co. is analyzing two projects for the future. assume that only one project can be selected. project x project y cost of m
    5·2 answers
  • Abel was employed as a security guard for Seep Corporation. Abel's job was to guard a fenced-in area and to use force to keep in
    15·1 answer
  • The preferred stock of Marble Comics pays annual dividends of ​$2 in perpetuity​ (starting in one​ year). If you buy a preferred
    13·1 answer
  • ​brooke's law states that adding more people to a late project makes the project​ ________.
    12·1 answer
  • true or false all companies will have at least one accounted titled building in their list of accounts
    9·1 answer
  • A firm's CFO is considering increasing the target debt ratio, which would also increase the company's interest expense. New bond
    7·1 answer
  • On November 10 of the current year, Flores Mills provides services to a customer for $8,000 with credit terms 2/10, n/30. The cu
    13·1 answer
  • What are the functions of Holloware
    12·1 answer
  • Given direct material cost of $10, direct labor cost of $15, direct-labor based overhead of $12 and Activity-Based Costing overh
    15·1 answer
  • ________________ products are customized and adapted to the culture, tastes and social trends of a country.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!