1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alja [10]
3 years ago
10

ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consum

ption is 80,000 units, Cost to place one order is $1,200, Cost per unit is $50, carrying cost is 6% of Unit cost, and EOQ is 8000 units. Find Total Cost of Inventory (Hint: total cost of inventory = Ordering Cost + Carrying Cost). (enter numerical value)
Business
1 answer:
viktelen [127]3 years ago
8 0

Answer:

The Total Cost of Inventory is $4,024,000

Explanation:

The computation of the total cost is shown below:

= Purchase cost + ordering cost + carrying cost

where,

Purchase cost = Annual consumption × Cost per unit\

                       = 80,000 × $50

                       = $4,000,000

Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order

                       = (80,000 ÷ 8,000) × $1,200

                       = $12,000

Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit

                      = (8,000 ÷ 2) × 6% × $50

                      = $12,000

Now put these values to the above formula  

So, the value would equal to

= $4,000,000 + $12,000 + $12,000

= $4,024,000

You might be interested in
Telecom Company is preparing its annual budgeted income statement. What is the best place to locate the amount of interest expen
anyanavicka [17]

Answer: d. Cash Budget

Explanation:

The Cash budget is used to project the company's expected position in terms of the cash it holds in the future. As such, the budget contains both cash receipts and cash disbursements.

Some of the disbursements include expenses and loan payments. The loan payments are where the interest expense will be found for the coming year.

5 0
3 years ago
Janet is planning to purchase the stock of Mortensen Petro, Inc. She expects the stock to pay a $1.98 dividend next year, and sh
Arada [10]

Answer: Current Price $26.65

Explanation:

Rate of return = 12.5%

dividends = $1.98

Expected Price (in a year from now) Pe= $28

Current price = Pc

R = (Pe - Pc + D)/Pa

0.1250 = (28 - Pc + 1.98)/Pc

28 - Pc + 1.98 = 0.1250Pc

-Pc - 0.1250Pc = - 28 - 1.98

- 1.125Pc = -29.98

 Pc = -29.98/(-1.1250Pc) = 26.64888889

 Pc = $ 26.65

7 0
3 years ago
WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a s
timofeeve [1]

Answer:

$258,000

Explanation:

Data given in the question

Salary paid on annual basis to onsite supervisor = $94,000

Salary paid on annual basis to one salaried estimator = $52,000

Two administrative assistant salaries $56,000 and $40,000

Salary of the president = $162,000

So, by considering the above information, the common fixed expense is

= Administrative salaries for one + administrative salaries for another + president salary

= $56,000 + $40,000 + $162,000

= $258,000

6 0
3 years ago
The average 6-year-old child from a developed nation weighs _____ pounds.
xxTIMURxx [149]
The average 6 year old weighs about 44 pounds
5 0
3 years ago
Suppose the Fed purchases $100 million of U.S. securities from security dealers. If the reserve requirement is 20 percent, the c
VikaD [51]

Answer:

The correct answer is option D.

Explanation:

The reserve requirement is 20 percent.

The Fed purchases $100 million of U.S. securities from security dealers.

The excess reserves with banks are zero.  

When fed purchased securities, this open market operation increased the reserves with banks by $100 million.  

The increase in money supply  

= \frac{1}{RR}\times Change\ in\ reserves

= \frac{1}{0.2}\times 100

= 500

7 0
3 years ago
Other questions:
  • A marketing company wants to estimate the proportion of consumers in a certain region of the country who would react favorably t
    13·1 answer
  • About _____ percent of those who use tobacco are aged 18 to 25.
    11·1 answer
  • A lease for a period of more than one year must be in writing to comply with the __________ . (a) leasehold estate (b) statute o
    5·1 answer
  • Hard skills are teachable abilities like reading, solving equations, and using computer software. True or False
    5·2 answers
  • Plastic Pretzels stock recently paid a dividend of $1.39 per share. The dividend growth rate is expected to be 3.60% indefinitel
    9·1 answer
  • Cassy Budd Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: begi
    8·2 answers
  • The government of country a has determined there is a coal shortage based on mining reports. as a result of these data, the gove
    15·2 answers
  • Alex receives a raise at work and continues to work the same number of hours each week. what is the most likely way that his dem
    13·2 answers
  • Thirty-two new employees from Market Enterprises are attending orientation, receiving information about company policies, and fi
    13·1 answer
  • . A business cycle is the a. period of time in which expansion and contraction of economic activity are equal. b. period of time
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!