1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lorasvet [3.4K]
3 years ago
9

Annual demand for a product is 40,000 units. The product is used at a constant rate over the 365 days the company is open every

year. The annual holding cost for the product is estimated to be $2.50 per unit and the cost of placing each order is $125.00. If the company orders according to the economic order quantity (EOQ) formula, then its optimal order size for this product would be:
Business
1 answer:
sergey [27]3 years ago
5 0

Answer:

The optimal order size would be 2,000

Explanation:

The Economic Orded Quantity minimize the cost of inventory, considering the annual demand, the cost of holding the inventory in the company and the cost for each order.

Q_{opt} = \sqrt{\frac{2DS}{H}}

D = annual demand =40,000

S= setup cost = ordering cost =125

H= Holding Cost =2.50

Q_{opt} = \sqrt{\frac{2\times40,000\times125}{2.50}}

Q_{opt} =2,000

You might be interested in
Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will
nata0808 [166]

Answer:

The price of the stock today is $54.61

Explanation:

The stock of this company pays a constant dividend for a defined period of time after equal intervals. Thus, it is just like an annuity. To calculate the price of such a stock, we will use the present value of annuity formula:

Assuming that the dividend is paid at the end of the period.

Present Value of Annuity = Dividend * [(1 - (1+r)^-n) / r]

Where,

  • r is the required rate of return
  • n is the number of years of annuity

The price of the stock today is,

P0 = 8.45 * [(1 - (1+0.13)^-15) / 0.13]

P0 = $54.607 rounded off to $54.61

5 0
3 years ago
On December 31, 2020, Grand Company had $1,232,000 of short-term debt in the form of notes payable due February 2, 2021. On Janu
VikaD [51]

Answer:

Current liabilities:

Notes payable   $8,000

Non-current/long-term liabilities:

Notes payable     $1,224,000

Explanation:

The actual amount of notes payable at 31st December is the difference between the short-term debt and the amount of cash realized from the issue of common stock whose proceeds are meant to be used in liquidating the short-term debt.

The actual amount of notes payable=$1,232,000-$1,224,000=$8,000

By issuing common stock of $1,224,000 to repay the short-term debt,the $1,224,000 is effectively converted to funding of long-term nature,hence classified as long-term liabilities

7 0
3 years ago
A customer opens a margin account by purchasing 100 shares of ABC at $60 per share, depositing the 50% Regulation T requirement.
Scilla [17]

Answer:

Account Balance in margin account:

Investment = $6,000 (100 x $60)

The customer's account will first increase with an unrealized gain of $2,000 ($80 - 60 x 100) on the next day.  It will then decrease with an unrealized loss of $2,000 ($80 - 60 x 100) on the day after.  This cancels the earlier unrealized gain.

Explanation:

The customer's investment will now show a balance of $6,000 with a contra account showing a debt of $3,000 for the balance of the Regulation T margin account.  According to investopedia, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products.  The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."

5 0
3 years ago
Check all answers that apply. Based on the model output, we can say that both the size of the move (CuFt) and number of large fu
RideAnS [48]

Answer:

P-value for slope coefficient of the size of the mode CuFt is0.00

Explanation:

The slope coefficient is change in probability when all other independent variables are held constant. The output is 93.3 which is due to the variation in labor hours. These variations are due to large number of furniture moved in cubic feet.

7 0
3 years ago
Montague (age 15) is claimed as a dependent by his parents, Matt and Mary. In 2019, Montague received $5,090 of qualified divide
IRISSAK [1]

Answer:

His taxable income for 2019 is $4,740

Explanation:

In order to calculate his taxable income for 2019 first we have to calculate the following:

First we have calculate the sum of the total income (earned and unearned)=$5,090+ $890=$5,980

Taxable income for 2019=total income-Higher of the following two:a. $1,000 or b. $890+$350

Therefore, Taxable income for 2019=$5,980-$1,240

                                                           =$4,740

His taxable income for 2019 is $4,740

6 0
3 years ago
Other questions:
  • A small business owner determines that her revenue during the next year should be approximately normally distributed with a mean
    11·1 answer
  • Because it is possible for investigators to confuse the suspect and destination disks when performing imaging, and to preclude a
    6·1 answer
  • If the demand for loanable funds shifts to the right, then the equilibrium interest rate a. and quantity of loanable funds rises
    8·1 answer
  • Star Repairs Co. does all the repair work for a medium-sized manufacturer of handheld computer games. The games are sent directl
    9·1 answer
  • A program in which students learn a specific skill for a particular job is called a(n)
    8·1 answer
  • A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief,
    6·1 answer
  • Using your knowledge of SMART goals, select the best goal.
    8·1 answer
  • At the beginning of Year 1, Copland Drugstore purchased a new computer system for $52,000. It is expected to have a five-year li
    13·1 answer
  • Data related to the inventories of Kimzey Medical Supply are presented below:
    9·1 answer
  • Kohl’s is addressing the increasing importance of technology in the retail experience by investing in.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!