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galina1969 [7]
3 years ago
7

The Cowboy Saddle Company manufactures plastic saddles that are used in the assembly process of their Mr. Ed doll. The firm desi

res to control inventory levels so as to minimize the sum of holding and order costs. Annual demand is 4000 units, and the item costs $25 per unit. It costs the firm $15 to place an order. The firm estimates its yearly inventory carrying costs at 10%. The lead-time for the product is 5 working weeks. Assume that there are 50 weeks in the work year and 5 working days per week.
i) Using the data above, What will be the time between orders (in working days) if the Cowboy Saddle Company ordered 400 units each time?

ii) What will be the total annual order cost if the Cowboy Saddle Company ordered 400 units each time. Use the data above?
Business
1 answer:
S_A_V [24]3 years ago
7 0

Answer:

time between orders 25 working days

yearly ordering cost: $150

Explanation:

The annual demand is 4,000 units if order size is 400 units there will be 10 orders per year

Given a year of 50 weeks: every 5 weeks an order will be placed.

As each week has 5 working days that would mean every 25 working days

Then, total order cost:

each order cost $15 to place as there are 10 order per year it will be $150 ordering cost.

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McCann Co. has identified an investment project with the following cash flows.
Ugo [173]

Answer:

The present value at 11% is $3,902.13,$3,479.85  at 16% and $2,615.57  at 30%

Explanation:

The present value formula is given as :

PV=FV/(1+r)^n

Where FV is the future value of cash flows such as the ones given in the question

r is the rate of return at 11%,16% and 30%

n is the applicable time horizon relevant to each of the cash flow.

Find attached spreadsheet for detailed calculations.

Download xlsx
7 0
3 years ago
Read 2 more answers
A​ single-price monopoly​ _______. A. experiences economies of scale over the relative portion of the LRAC curve B. is a price t
Allisa [31]

Answer:

C

Explanation:

Because he can not price discriminate

4 0
3 years ago
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"Suppose you wish to have $5,500 in 18 years. Use the present value formula to find how much you should invest now at 6% interes
Irina-Kira [14]

Answer:

The amount of investment should be $1926.891 approximately

<u>Explanation:</u>

The following formula has been used to calculate the amount of investment

A = P(1+r/100) ^n

where: A = future value , P = present value , R = rate of interest , N = time period

Hence , applying the formula, we get,

$5500 = P (1+6/100) ^18

Hence P=$5500/ (1.06) ^18

=$1926.891(approx)

7 0
3 years ago
Which method is the most efficient method to use to solve x^2+6x-7=0?
sweet-ann [11.9K]
(x+7)(x-1) = 0 ^x^2 + 6x - 7 = 0x               7x              -1
Its really easy if you think it this way.

7 0
4 years ago
Read 2 more answers
Perteet Corporation's relevant range of activity is 3,600 units to 8,000 units. When it produces and sells 5,800 units, its aver
creativ13 [48]

Answer:

Total MFG Overhead  $ 20680

Explanation:

Perteet Corporation

Manufacturing overhead consists of Variable manufacturing overhead and Fixed manufacturing overhead.

Variable manufacturing overhead $ 1.40

Fixed manufacturing overhead $ 3.30

Manufacturing overhead per unit    $ 4.7

No of units =  4,400

Total MFG Overhead = 4.7 * 4400 =  $ 20,680

The manufacturing overhead costs do no not consists of Fixed selling expense, Fixed administrative expense ,Sales commissions and Variable administrative expense. Another way of finding the manufacturing overhead costs is subtracting the cost of direct materials and direct labor from the cost of goods sold.

Cost of Goods Sold $ 14.2

Direct materials $ 6.30

Direct labor $ 3.20

Variable manufacturing overhead $ 1.40

Fixed manufacturing overhead $ 3.30

Total Manufacturing Costs= $ 14.2

Less Direct Materials Cost= $ 6.3

Less Direct Labor Costs = $ 3.2

Mfg Overhead= $ 4.7

No Of Units = 4400

Total MFG Overhead = 4.7 * 4400= $ 20680

     

6 0
3 years ago
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