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
dedylja [7]
4 years ago
13

You are the purchasing manager and you buy a raw material having the following information: Annual demand = 900 units Fixed orde

r quantity = 260 units Order cost = $100 / order Inventory carrying cost = 25% Per unit purchase cost = $10 / unit Safety stock = 30 On average, what is the dollar value of inventory that you will have for this material?
Business
1 answer:
alex41 [277]4 years ago
7 0

Answer:

=2983.25

Explanation:

In calculating the inventory on raw materials you will have to Add together the original value of raw materials, the works in progress if any and finished goods to get starting total inventory.

The solution to the question can be calculated like this:

EOQ=\sqrt{2* 900 * 100/2.5}

EOQ=268.328

EOQ+SAFETY STOCK=268.328+30

=298.325

VALUE=298.325*10

=2983.25

You might be interested in
Because of trade, a country may find its institutional production possibilities frontier shifting inward (to the left).
lakkis [162]

Answer:

Because of trade, country may consume outside its institutional production possibilities frontier.

Explanation:

Production possibility frontier plays a crucial role in economics. It is the point at which a country’s economy is most efficiently producing its various goods and services and, therefore, allocating its resources in the best way possible.

3 0
3 years ago
Northern Pacific Fixtures Corporation sells a single product for $28 per unit. If variable expenses are 65% of sales and fixed e
sveta [45]

Answer:

Break even point in dollars = $28,000

Explanation:

We know Sales - Variable Cost = Contribution

Thus, if we are provided that Variable expenses = 65% then contribution = 100 - 65 = 35%

Also provided selling price per unit = $28

Contribution Therefore = $28 \times 35% = $9.80

Break even point in dollars = \frac{Fixed\: Cost}{Contribution\: Margin}

Here, fixed cost = $9,800

Contribution margin = 35%

Putting values in above formula we have,

Break even point in dollars = \frac{9,800}{0.35} = $28,000

3 0
3 years ago
Read 2 more answers
Determine whether each of the following events causes a shift of a curve or a movement along a curve in the short run. Indicate
Over [174]

Answer:

A. The Supply Curve shifts Right.

As American Producers are paying less in dollar terms, their costs of production will reduce. The reduction in Cost of Production will spur producers to produce even more because inputs are cheaper and more will be bought and processed and so the Supply will increase and shift the Supply Curve left.  

B. Aggregate Demand Curve shifts Right.

As a result of more money being in the Economy, more people will want to lend out the excess cash they have to earn some interest on it. This will reduce the cost of borrowing and will therefore spur people to borrow more to be able to afford things they want. With the people having more money, they will buy more things therefore upping Demand. The Demand Curve will shift to the Right as a result.

C. Supply Curve shifts Left

Wages are an input into Production. Should they increase that would mean that the cost of Production has risen as well for Producers. They will respond by reducing the amount of goods they produce so as to maintain Profitability and reduce those costs. This will cut supply and shift the Supply Curve to the left.

D. Movement along Short Run Aggregate Demand Curve

Aggregate Demand Curve is constructed based on the demand of the Economy at different prices levels. Should the Price Level decrease it is simply a movement along the Aggregate Demand Curve.

4 0
3 years ago
Walter’s dividend is expected to grow at a constant growth rate of 6.50% per year. What do you expect to happen to Walter’s expe
denpristay [2]

Answer:

A. It will stay the same.

Explanation:

The formula to compute the dividend yield is shown below:

= (Annual dividend ÷ market price) × 100

Since in the question, it is given that the expected dividend is growing at the constant growth rate i.e 6.50%, so the expected dividend yield will remain the same in the future.  

As it shows a direct relationship between the growth rate and the dividend yield plus the market price is growing at a steady rate

3 0
3 years ago
When a business collapses only those who work directly for the business are impacted.
AlekseyPX
The answer that you are looking for is true
3 0
4 years ago
Read 2 more answers
Other questions:
  • 2.23 Intermediate. 'Costs may be classified in a variety of
    12·1 answer
  • A consumer products company has collected some data relating monthly demand to the price of one of its products: 4. Price Demand
    15·1 answer
  • The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity o
    7·1 answer
  • Why are primary and secondary markets governed by regulating bodies?
    6·2 answers
  • Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage
    6·1 answer
  • Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.
    6·1 answer
  • Bonita Industries produces face cream. Each bottle of face cream costs $11 to produce and can be sold for $15. The bottles can b
    7·1 answer
  • Need asap<br><br> Submit your essay on what's next for digital video in the future.
    12·1 answer
  • Lucy will open a checking account and 3 savings accounts for different purposes (emergency fund, gift fund, and education fund).
    5·1 answer
  • The marginal product of the 14th worker is 8 and the firm sells its output for $4 per unit. if labor is the only variable cost,
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!