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Zielflug [23.3K]
3 years ago
6

A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100

pounds $ 25 per pound 100 pounds to 3,999 pounds $ 24 per pound 4,000 pounds or more $ 23 per pound The cost to place an order is $40. Annual demand is 2,700 units. Holding (or carrying) cost is 25 percent of the material price. What is the economic order quantity to buy each time, and its total cost
Business
1 answer:
Jet001 [13]3 years ago
4 0

Answer:

EOQ = 201 units

total cost = $66,007.35

Explanation:

we can calculate the EOQ using 2 different prices (it makes no sense to use $23 since the minimum order size is larger than annual demand):

EOQ = √[(2 x S x D) / H]

  • S = order cost
  • D = annual demand
  • H = holding cost

<u>$25 per unit</u>

S = $45

D = 2,700

H = $25 x 25% = $6.25

EOQ = √[(2 x 45 x 2,700) / 6.25] = 197.18

<u>$24 per unit</u>

S = $45

D = 2,700

H = $24 x 25% = $6

EOQ = √[(2 x 45 x 2,700) / 6] = 201.25 ≈ 201 units

since both EOQs are higher than 100 units, then we must use $24 per unit

you have to make 2,700 / 201 = 13.43

total cost = (13.43 x $45) + (2,700 x $24) + (201 x $6 x 0.5) = $604.35 + $64,800 + $603 = $66,007.35

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Answer:

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Explanation:

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In this question we can see that the yoghurt from this manufacturer cost this outbreak. The business had to resort to issuing refunds, donations and compensations to those affected. the reason this was done is to reduce the negativity and damages that has been caused by the consumption of the product and also to reduce negativity that has been spread to the business name.

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(Apparel Retailing) A large catalog retailer of fashion apparel reported $100,000,000 in revenues over the last year. On average
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<u>Solution and Explanation:</u>

<u>calculate the times each year does the retailer turn its inventory as shown below:</u>

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= 50000000 divide 500000 = 10 times per year

Hence, the number of times each year does the retailer turn its inventory is 10 times.

b. Given, that the annual inventory cost is 40% of the inventory value

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Cost of inventory per unit = Annual inventory cost as % divide inventory turns

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For a $30 (COGS) itmes:

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hence, the inventory cost for a $30 (COGS) is $1.2

5 0
3 years ago
One reason people do not get enough to eat in a country is because:
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Answer:

C

Explanation:

One reason people do not get enough to eat in a country is because some crops are grown for export, leaving little to consume internally.

The amount of money made by expoting this crops is more beneficial to the economy and to the farmers that they prefer to export than to sell locally.This akes the crops scare in the country and equally very expensive.

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The inverse demand for a drug that treats melanoma is given by P = 3,000 – 10Q, where Q measures the number of drug treatments a
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Answer:

Profit-maximizing price per drug treatment is $2,000

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The "cost of production" (cost of providing all treatments) is given by the area under the cost curve

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It is a right triangle with one side being the quantity (Q) and the other being the cost of the last unit being produced (10Q)

So the cost of production is: 5Q^{2}

Revenue is given by P * Q = (3,000 - 10Q) * Q

Profit = Revenue - Cost of production = 3,000Q - 10Q^{2} - 5Q^{2}

To find maximum, take derivative and solve for:

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6 0
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Answer:

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7 0
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