Options:
a) $10,000
b) $1,000
c) $1,100
d) $11,000
Answer:
d) $11,000
Explanation:
There is 1% chance of involving in the auto accident
1% of $100, 000 = 1/100 * 100000 = $1000
The insurance company charges a 10% risk premium
10% of $100,000 = 10/100 * 100000 = $10,000
Full coverage = $10,000 + $ 1000
Cost of Full coverage = $11,000
Answer:
170
Explanation:
Assuming no safety stock is used, the reorder point (ROP) can be given by:
ROP = lead time x average daily demand.
The lead time is 5 days.
Average daily demand (ADD) is given by:
![ADD = \frac{10,200}{300} \\ADD = 34](https://tex.z-dn.net/?f=ADD%20%3D%20%5Cfrac%7B10%2C200%7D%7B300%7D%20%5C%5CADD%20%3D%2034)
Therefore, the reorder point is:
![ROP = 34*5\\ROP = 170](https://tex.z-dn.net/?f=ROP%20%3D%2034%2A5%5C%5CROP%20%3D%20170)
This means that Duncan's Stationery Shop should not let inventory fall under 170 binders in order to meet their average daily demand.
Answer:
$2,090,000
Explanation:
The computation of the total manufacturing cost is shown below:
Total manufacturing cost = Cost of direct materials used + direct labor cost + manufacturing overhead cost incurred
where,
Cost of direct materials used = Beginning balance of raw material + Purchase of direct materials - ending balance of raw material
= $290,000 + $840,000 - $350,000
= $780,000
So, the total manufacturing cost equals to
= $780,000 + $670,000 + $640,000
= $2,090,000
Answer:
Total cost= $58,600
Explanation:
Giving the following information:
A company purchased new equipment for $53,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,300; sales tax paid $2,900; and installation cost, $3,300.
We will assume that the sales tax can be an exemption allowed by the state.
Total cost= 53,000 + 2,300 + 3,300= $58,600
Answer:
It need to sale 1,000 additional sandwiches to break-even
Explanation:
The contribution margin per sandwich is $5 (10 sale price - 5 variable)
the radio spot will be considered a fixed cost thus, to break even we divide it by the contribution:
$5,000 / $5 per sandwich = 1,000 sandwiches