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Shkiper50 [21]
3 years ago
5

Consumers create a demand for something by

Business
1 answer:
zlopas [31]3 years ago
4 0

The answer is a. buying it.  When people buy goods then it creates a demand and when that demands lead to more production to meet those demands.  The more the demand for a product or service, the value for it goes up.

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A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,500 pounds of coffee annually. The
andre [41]

a) The determination of the optimal size of the order assuming an EOQ model for the local coffee shop is <u>265 pounds</u>.

b) The total cost in the new coffee shop where the demand for coffee increased to 4,000 pounds at an order size of 265 pounds per order (assuming a unit cost of $3 per pound) is <u>$253,500</u>.

<h3>What is the EOQ Model?</h3>

The economic order quantity (EOQ) model calculates the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.

It is determined using the following model:

EOQ = square root of: 2 (ordering costs)(demand rate) / holding costs.

Thus, the EOQ model can be worked out as follows:

  • Determine the demand units.
  • Determine the ordering cost.
  • Determine the holding cost.
  • Multiply the demand by 2.
  • Then multiply the result by the order cost.
  • Divide the result by the holding cost.

<h3>Data and Calculations:</h3>

a) The annual demand for coffee = 3,500 pounds

Holding cost per pound = $10

Ordering cost = $100

EOQ = square root of: 2 ($100 x 3,500) / $10

= 265 pounds

The annual demand for coffee = 4,000 pounds

Holding cost per pound = $60

Ordering cost = $100

EOQ (Order size) = 265 pounds

Assumed unit cost per pound = $3

The total cost in the new coffee shop = $

Annual holding cost = $240,000 ($60 x 4,000)

Annual ordering cost = $1,500 ($100 x 4,000/265)

Annual purchase cost = $12,000 (4,000 x $3)

Total costs = $253,500

Learn more about the economic order quantity at brainly.com/question/14625177

6 0
1 year ago
Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods ag
Alina [70]

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. The document which is applicable here is an A. <u>insurance certificate.</u>

<u />

Explanation:

  • A certificate of insurance is a document used to provide information on specific insurance coverage.
  • The certificate provides verification of the insurance and usually contains information on types and limits of coverage, insurance company, policy number, named insured, and the policies' effective periods
  • Certificate of Insurance is a summary document usually issued by an agent on behalf of an insurer that says a policy has been issued to an insured for a general type of risk.
  • The Certificate is usually issued to a third party who wants some evidence or assurance that a policy has been issued.
  • A certificate of insurance is requested when liability and large losses are a concern.
  • Most commercial leases require the tenant to provide certificates of insurance or other evidence of insurance. Certificates of insurance are typically issued by an agent or broker for the named insured and set forth the coverages written for the insured
5 0
3 years ago
What is the first thing you should do when a customer requests a sale item once you’ve determined that item is out of stock? Tel
ipn [44]

Answer:

Tell the customer when you store’s next delivery day is and to come back then Issue the customer a raincheck for the item that is out of stock

Explanation:

Customer<em> retention</em> is important as well as <em>meeting their specific needs</em>. It is unwise to turn back a customer and refer them to a competitor, this may mean loss of business (currently and in the future). Also it is unwise to offer a substitute item as this will not meet their needs (though you may want to inform them of the substitute item if they are interested).  Issue the customer a raincheck for the item that is out of stock is the best way to go and keep the business.

7 0
2 years ago
Manufacturing reports the following data for the month: Purchases of raw materials, on account $55,250 Materials requisitions: D
xxMikexx [17]

Answer:

Journal 1

Direct Materials $49750 (Debit), Indirect Materials $3700,(Debit)  Direct labor $ 51000 (Debit), Indirect labor $ 2500 ( Debit), Manufacturing Overhead Account $106960 (Credit)

Journal 2

Manufacturing Overhead Account $106960 (Debit), Accounts Payable $106960

Explanation:

Journal 1

Materials and Labor (both direct and indirect) resource acquired shows an accumulation of resources needed for manufacturing process.

Therefore these resources are being recorded in their respective accounts and transferred to manufacturing overhead account.

Journal 2

Both materials and Labor acquired for manufacturing process are still owing.The journal represent a present obligations in settlement of the Manufacturing overhead (Both for Materials and Labor)

7 0
3 years ago
Average demand for a particular item is 1,200 units per year. it costs $100 to place an order for this item, and it costs $24 to
Anika [276]
On average this item will be ordered "once a <span>month".
We can find the order interval by dividing the EOQ (economic order quantity), in above situation that is equal to 100 and annual demand is equal to 1200.
So, the time interval in which this item will be ordered;
100/1200 = 1/12
it means 1/12th of a year that is equal to once a month.
</span>
3 0
3 years ago
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