Answer:
Total cost = Total ordering cost + Total holding cost
Total cost = DCo + QH
Q 2
Where
D = Annual demand
Co = Ordering cost per order
Q = EOQ
H = Holding cost per item per annum
D = 40,000 units
Co = $48
H = 18% x $8.00 = $1.44
EOQ = √2DCo
H
EOQ = √2 x 40,000 x $48
$1.44
EOQ = 1,633 units
Explanation:
EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.
Answer:
it takes 15 years 10 months to reach your goal.
Explanation:
The Fixed deposits are in the form of an ordinary annuity.
The Future Value of this Ordinary Annuity must be $207,819.47 ($250,000 - $42,180.53)
Thus find number of years that the fixed deposits would amount to $207,819.47.
Using a Financial Calculator enter the following data to calculate the period, N.
PMT = $5,000
P/yr = 1
r = 12 %
FV = $207,819.47
N = ?
Thus the number of years, N it takes to to reach your goal is 15.7921 or 15 years 10 months.
Answer:
Competitive supply market, substitution is possible, price per unit is important.
Explanation:
A portfolio matrix is a chart used to define products in terms of both the growth in their industry and their specific market share.
The vertical axis of the chart is for growth in the industry, and the horizontal axis is for the market share of the specific product within that industry.
The formula for discounted payback period is DPP = -ln (1 –
Id/C) / ln (1+d), wherein I is the initial investment, d is the discount rate,
and C is the cash flow. Substituting values, DPP = - ln(1-((0.12)($100)/$27)) /
ln(1+0.12). Therefore, DDP is equal to 5.19 years.
Answer:
$30 Favorable
Explanation:
Calculation for the activity variance for supplies cost in March
Using this formula
Activity variance = (Actual units - Budgeted units) * Variable cost
Where,
Actual units=856
Budgeted units=861
Variable cost=$6
Let plug in the formula
Activity variance=(856-861) * $6
Activity variance=5*$6
Activity variance=$30 Favorable
Therefore the activity variance for supplies cost in March would be closest to: $30 Favorable
