A product whose EOQ is 40 units experiences an increase in the annual holding cost from $10 per unit to $90 per unit. The revised EOQ is nine times as large.
The Economic Order Quantity (EOQ) is the ideal order quantity that a business should purchase to minimize inventory costs such as inventory holding costs, out-of-stock costs, and order costs.
Economic Order Quantity (also known as Economic Purchase Quantity) is the order quantity that minimizes the total storage and ordering costs in inventory management. One of the oldest classic production planning models. Wikipedia
Economic Order Quantity or EOQ, also known as "Optimal Lot Size", is designed to help businesses determine the optimal order quantity to minimize logistics costs, storage space, shortages, and excess inventory costs calculated. The formula is: EOQ = [2(setup cost)(demand rate)] / square root of holding cost.
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Answer:
INCORRECT.
In income summary account, all revenue accounts are closed by debiting them and crediting the income summary account. expense accounts are closed by crediting them and debiting income summary account. then on closing income summary account it shows debit balance if there is a net loss and it shows credit balance if there is a net income.
In the given case clever auto services has debit balance of $5,300 i,e it implies that clever auto services has loss .
Therefore above statement is wrong. It implies a loss of $5300 not the net income of $5,300.
A major advantage of the built-in or automatic stabilizers is that they require no legislative action by Congress to be made effective.
<h3>What are automatic stablizers?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of the congress. An example of an automatic stablizer is taxes.
In an expansion, progressive tax increases the tax paid by citizens and in a contraction, tax paid is reduced and this increases disposable income.
Here is the complete question:
A major advantage of the built-in or automatic stabilizers is that they:
(a) simultaneously stabilize the economy and reduce the absolute size of the public debt.
(b) automatically produce surpluses during recessions and deficits during inflation.
(c) require no legislative action by Congress to be made effective.
(d) guarantee that the federal budget will be balanced over the course of the business cycle.
Answer:
B) $5.64 million
Explanation:
SAP inc can receive $500,000/ shipyard and 4 shipyards a year yields gross cash flows of 500*4 = $2,000,000. Half of these are costs that give us a Net cash flow of $1,000,000/ year.
Since there is no maturity of the project we calculate present value of cash flow with the following formula
PV of cash flow = 1,000,000/0.14 = $7.14 million rounded off
NPV = 7.14-1.5 = 5.64 million
Hope that helps.
Answer:
Based on the CAPM approach, the cost of common from reinvested earnings is e. 10.93%
Explanation:
Hi, first, let´s introduce the formula for the CAPM approach.
Therefore:
So, the cost od common from reinvested earnings is 10.93%, which would be option "e".
Best of luck.
