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Komok [63]
3 years ago
8

Suppose that the demand rate is 500 units per week. The fixed ordering cost is $60 per order. The unit inventory cost is 20% of

the product cost. The cost of the product depends on the quantity ordered. It is $0.05 when you order less than 2300 units, $0.048 when you order between 2301 and 5000 units and $0.045 when you order more than 3000 units. What is your optimal order quantity if you intend to limit the number of units to at or below 2300 units
Business
1 answer:
Amanda [17]3 years ago
6 0

Answer:

Optimal order quantity is 17,664 units

Explanation:

Optimal order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.

As per given Data

Demand = 500 units per week = 500 units x 52 weeks = 26,000 units

Ordering Cost = $60

As the limit of the is 2,300 or below the product cost is $0.05 and the inventory cost is 20% of the product cost.

Inventory cost = $0.05 x 20% = $0.01

Optimal order quantity =  \sqrt{\frac{2 X Ordering cost X Annual Demand}{Inventory cost} }

Optimal order quantity = \sqrt{\frac{2 X 60 X 26000}{0.01} }

Optimal order quantity = 17,664 units

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Library of Congress (LOC)

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6 0
3 years ago
How did the conflicts between labor unions and business capital evolve during the gilded age? be sure to address strikes, the ev
slavikrds [6]
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6 0
3 years ago
1.Danner Company expects to have a cash balance of $45,000 on January 1, 2017. Relevant monthly budget data for the first 2 mont
Nat2105 [25]

Answer:

\left[\begin{array}{ccc}&January&February\\$beginning&45000&27500\\$receipts&97000&150000\\$disbursement&-114500&-163500\\$interest&0&0\\$subtotal&27500&14000\\$minimun&20000&20000\\$Financing&&\\$beginning&0&0\\$payment/loan&0&6000\\$ending&0&6000\\&&\\$ending cash&27500&20000\\\end{array}\right]

Explanation:

On January we collect the 85,000 from revenues and the 12,00 form marketable securities.

Then, we add up each disbursement:

Materials 50000

Labor       30000

Overhead (net of depreciation) 19,500

Selling and administrative 15000

Total 114,500

Then we solve for the cash balance and get the blaance as it is higher than 20,000 we do not need financing

Then, this value is the beginning cash for February. As the ending balance is 14,000 we will take 6,000 financing to reach the bare minimum of 20,000

3 0
3 years ago
On December 31, 2019, Coolwear, Inc. had a balance in its supplies account of $48,400. During 2020, $86,000 was paid for new sup
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Answer:

$92,400

Explanation:

Supplies expense for 2020 would be calculated as;

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Given that ;

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Balance in supplies account at the end of year 2020 = $42,000

Therefore,

Supplies expense for 2020

= $48,400 + $86,000 - $42,000

= $92,400

6 0
3 years ago
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