Interest rates on mortgages are lower because the home is ____

A resort hotel is planning to install a computerized inventory system to manage complementary guest items such as soap and shamp

jeka57 [31]

Answer:

a) safety stock = z-score x √lead time x standard deviation of demand

z-score for 99.9% = 3.29053

√lead time = √7 = 2.6458

standard deviation of demand = 3

safety stock = 3.29053 x 2.6458 x 3 = 26.12 ≈ 26 soaps

reorder point = lead time demand + safety stock = (7 x 16) + 26 = 138 soaps

EOQ = √[(2 x S x D) / H]

S = order cost = $10

D = annual demand = 16 x 365 = 5,840

H = $0.05

EOQ = √[(2 x $10 x 5,840) / $0.05] = 1,528.40 ≈ 1,528 soaps

b) total order costs per year = (5,840 / 1,528) x $10 = $38.22

total holding costs = (1,528 / 2) x $0.05 = $38.20

total annual ordering and holding costs = $76.42

4 0

3 years ago

Indicate the section operating activities,investing activities,financing activities,or none in which each of the following would

Pavlova-9 [17]

Answer and Explanation:

The indication of the following transactions for the cash flow statement is given below:

a. Operating activities

b. Operating activities

c. Financing activities

d. Financing activities

e. None

f. Financing activities

g. Investing activities

h. Investing activities

i. Operating activities

j. OPerating activities

3 0

3 years ago

A company purchases land and a building for $300,000. The appraisal attributes a fair market value (FMV) to the land of $180,000

ser-zykov [4K]

$700,000 I hope that helps

5 0

3 years ago

Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture and sell festive balloons.

Sergeeva-Olga [200]

Answer:

NO Balloons' WACC = 7%

Explanation:

WACC = Weighted average cost of capital

The weighted average cost of capital (WACC) refers to calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.

Respective calculation of WACC:

Step 1: Calculate the value of equity:

Number of shares = 12 million

Share price = $19.5 per share

Value of equity = 12 million shares * 19.5/share = $234 million (A)

Step 2: Calculate the value of debt:

Bonds = 200,000

Value of debt = 200,000 bonds * 1000 face value/bond * 89% sale price = 178 million (B)

Step 3: Calculate the firm value:

Total firm value (A+B) = 234 + 178 = 412 million

Step 4: Calculate the weight of equity:

Dividing the value of equity to total firm value:

Weight of equity = 234 / 412 = 0.5680

Step 5: Calculate the weight of debt:

Dividing the value of debt to total firm value

Weight of debt = 178 / 412 = 0.4320

Step 6: Calculation of WACC :

WACC = weight of equity * cost of equity + weight of debt * cost of debt = 0.5680 * 9.275% + 0.4320 * 4% = 7%

7 0

3 years ago

J Crane, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended Janua

kari74 [83]

Answer:

J Crane, Ltd

Contribution Margin Income Statement

For the Month ended January 31 YY

$ $

Sales revenue 750,000

Less Variable cost :

Cost of goods sold 300,000

Selling expenses 19,500

Admin Expense 37,500

357,000

Contribution Margin 393,000

Less Fixed cost :

Selling expense 4,060

Administrative expense 12,000

16,060

Net income 376,940

Working:

Number of Coat sold = 750,000/250 = 3000 coats

Variable costs:

Selling expenses = 6.5 x 3000 = 19500

Admin Expense = 750,000 x 5% = 37,500

Fixed cost:

Selling expenses = 23560 - 19500 = 4060

Admin Expense = 49,500 - 37,500 = 12,000

4 0

3 years ago

Interest rates on mortgages are lower because the home is _____.