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DaniilM [7]
3 years ago
6

Matthew​ Liotine's Dream Store sells water beds and assorted supplies. His​ best-selling bed has an annual demand of 410 units.

Ordering cost is ​$41​; holding cost is ​$5 per unit per year.
To minimize the total cost, how many units should be ordered each time an order is placed?
Business
1 answer:
never [62]3 years ago
5 0

<u>Given:</u>

Annual demand = 410 units

Ordering cost = $41

Holding cost = $5 unit per year

<u>To find:</u>

Number of units to be ordered each time an order is placed

<u>Solution:</u>

On calculating the number of units,

\Rightarrow \sqrt{(\frac{2(390)(38)}{5})} \rightarrow\sqrt{\frac{780\times38}{5}}= 76.99

Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.

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The following expenditures were incurred by Tamarisk, Inc. in purchasing land: cash price $74,000, accrued taxes $4,400, attorne
Stels [109]

Answer:

$87,800

Explanation:

The following expenditures were incurred by Tamerisk incorporation when purchasing a land

Cash price = $74,000

Accured taxes = $4,400

Attorneys fee= $4,300

Real estate brokers commission = $1,500

Clearing and grading = $3,600

Therefore the cost of the land can be calculated as follows

= $74,000 + $4,400 + $4,300 + $1,500 + $3,600

= $87,800

Hence the cost of the land is $87,800

5 0
2 years ago
Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 2
Dovator [93]

Answer: $413.81

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value

Coupon is a constant payment so is an annuity.

Coupon = 6% * 1,000 = $60

Price of bond = Present value of annuity + Present value of face value

= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)

= (60 * 6.514) + (1,000 / (1 + 15%)²⁷

= $413.81

8 0
3 years ago
Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices s
REY [17]

Answer:

<u>Predatory pricing</u>

Explanation:

A "predator" refers to an animal who survives by "preying" on other animals.

Predatory pricing in a similar sense refers to that form of excessively low pricing which in a way consumes other firms by taking away their share of industry revenues. Such form of pricing is considered illegal and is against healthy competition.

Such pricing eliminates competitors from the market and gradually leads to emergence of a monopoly i.e supremacy of a single firm in the whole industry and thus considered an illegal practice.

In the given case, the retail chain can be alleged to have followed predatory pricing which is substantiated by the fact that it cuts it's prices excessively i.e even below cost , thereby forcing smaller companies to exit the industry.

7 0
3 years ago
The Baldwin company will sell 100 units (x1000) of capacity from their Baker product line. Each unit of capacity is worth $6 plu
yKpoI14uk [10]

Answer: $2,210,000

Explanation:

From the question, we are informed that the Baldwin company will sell 100 units (x1000) of capacity from their Baker product line and that each unit of capacity is worth $6 plus $4 per automation rating.

We are further told that the Baldwin company will sell the capacity for 35% off. The amount they'll receive when the capacity is sold will be:

The cost per unit will be

= 6 + (4 × 7)

= 34

The worth of the capacity will now be:

= 100000 × 34

= 3,400,000

The amount received will be:

= 3400000 × (1-35%)

= 3400000 × 0.65

= $2,210,000

3 0
3 years ago
The musical instrument store estimates costs of $18,750.00 annually to carry inventory of musical instruments and accessories. t
guapka [62]
To find the value of the inventory to the nearest cent: 
Estimated costs are: $18,750
Storage costs: 12%
Interest costs: 12%
Transportation costs: 5%
Let's add the costs up: 12% + 12% + 5% = 29%  

We are solving for the value of inventory so in this case we will make that X.
X = estimated costs/interest amounts 
X = $18,750/29% 
X = $18,750/0.29
X = $64,655.17

The value of the inventory is $64,655.17

To check your work you can take $64,655.17 and multiply it by 29%
= $18,750
6 0
3 years ago
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