Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The numbe
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Answer:
200 units
Explanation:
For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:
where,
Annual demand is 1,600 units
Ordering cost per order is $25
And, the carrying cost or holding cost per unit per year is $2
Now placing these values to the above formula
So, the economic order quantity is
= 200 units
Answer:
cost of expansion = $1389859.55
Explanation:
Given data:
Original size = 185,000 ft^2
New expansion = 25000 ft^2
capacity component = 0.62
total cost for original size of clinic is = $17 million
Size of new clinic = 185,000 + 25,000 = 210,000 ft^2
cost of new clinic
cost of new clinic =
cost of new clinic = $18,389,859.56
cost of expansion = cost of 210,000 ft^2 - cost of 185,000 ft^2
= 18,389,859.56- 17,000,000
cost of expansion = $1389859.55