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shusha [124]
4 years ago
15

Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost $8.00, annual demand of 4

0000, and ordering cost of $48.
Business
1 answer:
torisob [31]4 years ago
7 0

Answer:

Total cost = Total ordering cost + Total holding cost

Total cost = DCo     + QH

                     Q              2

Where

D = Annual demand

Co = Ordering cost per order

Q = EOQ

H = Holding cost per item per annum

D = 40,000 units

Co = $48

H = 18% x $8.00 = $1.44

EOQ = √2DCo

                H

EOQ = √2 x 40,000 x $48

                     $1.44

EOQ = 1,633 units

Explanation:

EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.

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Aloiza [94]

Answer and Explanation:

Year    Cash Inflow      Discounting factor 9%, 12 Years   Present Value

0        -$8,200                         1                                 -$8,200.00

1          $1,350                               0.8929                               $1,205.42

2          $1,295                              0.7972                               $1,032.37

3          $1,240                               0.7118                                $882.63

4          $1,185                                0.6355                              $753.07

5           $1,130                               0.5674                               $641.16

6           $1,075                               0.5066                              $544.60

7            $1,020                              0.4523                              $461.35

8            $965                                0.4039                              $389.76

9             $910                                 0.3606                             $328.15

10            $855                                0.322                               $275.31

11            $800                                0.2875                              $230.00

12            $745                                 0.2567                            $191.24

Net Present Value                                                                  -$1,264.95

Since the net presnet value comes in negative so it is not beneficial for a company as it is not able to cover the initial investment

6 0
3 years ago
In a SWOT analysis, which of the following is an example of a threat? A. A low quality product B. Bad customer service C. Compet
Morgarella [4.7K]
In a SWOT stands for: Strength, Weakness, Opportunity and Threat. SWO are internal factors while T is an external factor. So if you look at your choices, products, customers and employees are internal and only one is external, which is Competing companies.

The answer is C. 
3 0
4 years ago
Read 2 more answers
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topjm [15]

Answer:

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Explanation:

Given the formula P(1 + r)^nt,

P = principal; r = annual interest rate; n = number of times interest is compounded per year; t = time in years

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Answer: 12,000

Explanation:

Given that,

Stockholder's equity at the beginning of the year = 70,000

Stockholder's equity at the end of the year = 60,000

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Net Income = Ending Balance + Dividends - Beginning Balance

                    = 60,000 + 22,000 - 70,000

                    = 12,000

Therefore, the net income for the year was 12,000.

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Answer:

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Only specific companies or business are able to advertise their products on the global platform and earn some profit .

The example are -

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Hence , from the given scenario of the question ,

The correct answer is Global advertising .

7 0
3 years ago
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