What happens to the quantity demanded if the price of a slice of pizza increases is that, it will be reduced. Since it is already more expensive, people would generally find other pizzas that are lower of price that still gives them the same satisfaction. The law of demand and supply is being applied here.
Answer:
D = 2,510 brackets
H = $1.60
Co = $20
EOQ = √2 x 2510 x 20/1.60
EOQ = 250 units
Average inventory = EOQ/2
= 250/2
= 125 units
Total Holding Cost = QH/2
= 250 x $1.60/2
= $200
No of order = Annual demand/EOQ
= 2,510/250
= 10 times
Annual ordering cost = DCo/Q
= 2,510 x $20/250
= $200
Total annual cost = Annual ordering cost + annual holding cost
= $200 + $200
= $400
Time between orders = No of working days in a year/No of order
= 250/10
= 25 days
Explanation: Economic order quantity is a function of square root of 2 x annual demand x ordering cost per order divided by holding cost per item per annum. D denotes annual demand, Co is ordering cost per order and H represents holding cost per item per annum.
Average inventory is calculated as EOQ/2
Total annual holding cost is calculated as EOQ multiplied by holding cost per item per annum/2
No of order is the ratio of annual demand to EOQ
Annual ordering cost is calculated as annual demand multiplied by ordering cost per order divided by EOQ
Total annual cost is the aggregate of annual ordering cost and annual holding cost
Time between orders is the ratio of number of days in a year to number of order
False, any leader should have good listening skills regardless of their political party
Answer:
The answer is: Continue to make — $60,000 advantage.
Explanation:
We have to compare the current total costs with the total costs of buying the parts from a supplier.
Current costs
- total variable manufacturing $240,000
- Supervisor's salary $60,000
- Depreciation $20,000
- <u>Allocated fixed overhead $140,000</u>
- Total current cost: $460,000
Costs of buying the parts
- total purchase price $360,000
- Allocated fixed overhead $140,000
- <u>Depreciation $20,000</u>
- total costs for buying the parts $520,000
Since buying the parts from a supplier is $60,000 more expensive than continue manufacturing ($520,000 - $460,000), Andrews Co. should continue as it is.
