Answer:
25,768
Explanation:
The square root rule of inventory states that the average inventory level can be calculated by multiplying the total inventory by the square root of the number of future warehouses divided by the number of the current warehouses.It's purpose is to estimate the effect of risk pooling.
Workings
X2 =( X1)* ( N2/N1)
Inventory per warehouse = 4000
No of Warehouse = 5
To inventory = 4000*5 = 20,0000
New no of Ware house = 3
20000(√5/3)=
20000*1.29=25,768
Answer:
8,100 units
Explanation:
The computation of the break-even point in unit sales is shown below:-
Break-even sales in units = Fixed cost ÷ Contribution margin per unit
where,
Contribution margin per unit = Selling price per unit - variable cost per unit
= ($180,000 ÷ 9,000) - ($117,000 ÷ 9000)
= $20 - $13
= $7
Now the break even unit sales is
= $56,700 ÷ $7
= 8,100 units
Answer:
Option C, allowing all employees access to the materials warehouse, is the right answer.
Explanation:
Option C is the correct answer because option C recommends allowing access to all the employees. However, allowing access to all employees will reduce security and increase the risk level. While all given options are helpful in safeguarding the inventory except option C. Thus, in this case, it would be difficult to monitor every employee. So Option C is the right answer.
Answer:
7,200 units
Explanation:
The computation of the no of units for break even for product A is given below:
But before that the contribution margin for the sales mix is
<u>Particulars product A product Z</u>
Selling price $84 $105
Less:
variable cost -$41 -$45
Contribution margin $43 $60
Sales mix 5 2
CM sales mix $215 $120
Total $335
Now the break even sales in total is
= $482,400 ÷ 335
= 1,440 units
Now for product A, it is
= 1,440 × 5
= 7,200 units
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