Answer:
B. Causes of variability
Explanation:
Inventory reduction via Just in time is a technique that aligns raw material orders from suppliers directly to production schedules. It helps in reducing inventory costs. It increases efficiency and reduces waste as goods are only received when the organization using JIT needs them for operations. In JIT, production period is short, warehouse need is minimize thus reducing costs. Also, it becomes of useful tool in identifying causes of variability. It reduces variability caused by both internal and external factors. Variability are normal deviation from the most efficient and optimum process.
Answer:
The correct answer is letter "D": sales less variable production, variable selling, and variable administrative expenses.
Explanation:
Contribution Margin is the difference between the revenue from sales and variable costs. This helps a company to analyze the profitability of individual products by calculating how earnings are influenced by sales. In other words, the contribution margin represents the portion of revenues that are used to cover fixed expenses such as administrative staff payments.
Answer:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Explanation:
Note: See the attached excel file for the cash budget for January and February.
In the attached excel file, the following calculation is made:
Additional loan in February = Minimum monthly cash balance - Preliminary cash balance in February = $23,600 - $16,520 = $7,080
From the attached excel file, we have:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Answer:
3) is a type of mathematical model used when the user seeks to optimize some objective function subject to some constraints
Explanation:
Optimization models are used by businesses to try to solve some specific problem by optimizing or minimizing its function.
For example, you want to optimize your inventory management. Your goal will be to lower your inventory costs by maximizing inventory turnover.
Answer:
Yes they should buy the new machine.
Explanation:
since the new mill produces after tax cash savings of $8,200 per year, we should calculate the net present value of the 10 cash flows in order to determine if the project is profitable or not.
using a present value annuity factor for 10 years and 12% discount rate = 5.6502
the project's NPV = ($8,200 x 5.6502) - $38,000 = $46,331.64 - $38,000 = $8,331.64
since the NPV is positive, the project is profitable.