EOQ stands for Economic Order Quantity. It<span> is the order quantity that minimizes the total holding costs and ordering costs.</span><span>
The difference between the basic EOQ model and the production order quantity model is that </span>the production order quantity model does not require the assumption of instantaneous delivery.
Answer: Calculate his net working capital
Explanation:
The net working capital shows a company's ability to pay off its short term obligations using its current assets.
It is calculated by subtracting the current liabilities of a company from its current assets. When net working capital is high, a company has enough to ensure that it can grow in the short run but when the net working capital is little or negative, the company will have a hard time paying off short term obligations which will affect its financial health.
Answer:
D. Shoes Cult has a competitive advantage over Aros.
Explanation:
Competitive advantage is defined as the advantage an entity has when they are able to produce a good at cost that is lower than the cost incurred by other parties in the same industry. This results in higher profit margins for businesses that have low production cost.
In this scenario Aros produces shoes for $20 while Shoes Cult produces the same shoes for $22. They both have the same price ceiling of $30.
Aros has competitive advantage over Shoes Cult because they produce at a lower cost and make more profit than Shoes Cult.
Assume they both sell at the maximum price. Profit for Aros= 30- 20=$10
Profit for Shoes Cult= 30-22= $8
Answer:
Option C 16.36% is correct.
Explanation:
We can find the growth using the following growth formula:
g = (Earning per share today / Earning per share n years ago)^(1/5) - 1
EPS of this year is $3.2 per share and 5 ago was $1.5 per share.
So by putting values we have:
g = (3.2 / 1.5) ^(1/5) - 1 = 16.36%
The right option is C.
Answer:
Results are below.
Explanation:
Giving the following information:
Last year, the Corporation worked 19,400 actual direct labor-hours.
The Corporation had calculated a predetermined overhead rate of $9 per direct labor-hour.
<u>To allocate overhead, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9*19,400
Allocated MOH= $174,600
<u>Now, we can determine the over/under allocation:</u>
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 156,400 - 174,600
Under/over applied overhead= $18,200 overallocated
