Answer: 27.28 units
Explanation:
From the question, we are told that a company wants to determine its reorder point (R) and that demand is variable and they want to build a safety stock into R. We have also been given the information that the company wants to have a service level of 95 percent and that average daily demand is 8, lead time is 3 days and the standard deviation of demand during lead time is 2.
It should be noted that a service level of 95% will have a desired z score of 1.64. To get the desired value of R, we multiply the average daily demand by the number of the days in lead time and then add to the multiplication between the standard deviation during the lead time and the desired z score. Mathematically, this will be expressed as:
= (8 × 3) + (2 × 1.64)
= 24 + 3.28
= 27.28
Therefore, the desired value of R = 27.28 units
Answer: Is useful to managers in planning and decision making.
Explanation:
The Contribution approach to the income statement helps the company understand better the behaviour of it's variable and fixed assets because the Contribution Margin approach first subtracts variable costs from revenue and then subtracts fixed costs.
This allows the company to know which of the costs are more taxing on the company thereby enabling the company to know which to work on. It is therefore useful to managers in planning and decision making.
Answer:
$59,410
Explanation:
With regards to the above information, we need to calculate first, total number of units for first quarter of the year.
Total number of units for first quarter of the year = 2,960 + 2,740 + 3,440
= 9,140
But, each unit requires 0.5 hours of direct labor.
It therefore means that;
1 unit need ----- 0.5 hours of direct labor
9,140 ----- ?
= (9,140 × 0.5) / 1
= 4,570 hours.
Finally, we will multiply the total hours by the payment per hour, or direct labor rate; which is $13 per hour.
= 4,570 × $13
= $59,410
Therefore, the budgeted direct labor cost for the first quarter of the year is $59,410
Answer:
Explanation:
Mike insurance company will pay = 0.9 of 400 = $ 360
The one that you could do to adress this is to Establish a system that provides each sales team member with specific, challenging sales goals and performance<span> feedback from their store manager.
By doing this, not only we put a focus for each team members on the expectation toward them, we also could use the data collected by each determines to determine if there is someone that needed to be let go.</span>
