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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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When the _____ value of debt is the same as its face value, it is said to be selling at _____ value.
Allushta [10]

Answer:

When the <u>market</u> value of debt is the same as its face value, it is said to be selling at <u>par</u> value.

Explanation:

Face value and par value is same. When market price of the bond is same as the face value of the bond it is said that this debt is trading on its par value. Par or face value is the value on which bond is initially issued and the value mentioned on the face of the bond. So, When the <u>market</u> value of debt is the same as its face value, it is said to be selling at <u>par</u> value.

8 0
3 years ago
It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much o
solong [7]

Answer:

The correct answer is: reduce; not as highly valued as others.

Explanation:

All the economic systems must provide people with the goods and services that they want and need. But it is also necessary to limit them from getting as much as they wish.

This is because providing as many goods and services as they want may lead to a reduction in efficiency. Economic efficiency is achieved when resources are allocated in such a way that there is no wastage and resources are allocated to most valued use.

If the economic systems do not restrict the production of goods and services as much as they want it may lead to the production of those goods and services that are not as highly valued as others. This will cause wastage of resources, thus reducing the economic efficiency of the system.

8 0
3 years ago
Market competition may sometimes encourage a firm to innovate out of fear because of the perception that Group of answer choices
topjm [15]

Answer:

they will inevitably fall behind other competitors seeking out innovations.

Explanation:

Innovation typically involves the creation of a new product of any category such as automobile, building, phones, electronics, etc., that generates money for the innovators or manufacturers through purchase made by the end users (consumers).

Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.

This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.

Hence, market competition may sometimes encourage a firm to innovate out of fear because of the perception that they will inevitably fall behind other competitors in the same industry who are seeking out innovations.

7 0
3 years ago
The weekly profit of a company is modeled by the function w = –g2 + 120g – 28. The weekly profit, w, is dependent on the number
FromTheMoon [43]

Answer:

120 gizmos.

Explanation:

We have been given that the weekly profit of a company is modeled by the function w =-g^2+120g-28. The weekly profit, w, is dependent on the number of gizmos, g, sold. The break-even point is when  w=0.

To find the number of gizmos the company must sell each week in order to break even, we will substitute w=0 in profit function as:

0 =-g^2+120g-28

-g^2+120g-28=0

Now, we will use quadratic formula to solve for g.

g=\frac{-120\pm\sqrt{120^2-4(-1)(-28)}}{2(-1)}

g=\frac{-120\pm\sqrt{14400-112}}{-2}

g=\frac{-120\pm\sqrt{14288}}{-2}

g=\frac{-120\pm 119.53242237987}{-2}

g=\frac{-120-119.53242237987}{-2}\text{ or }g=\frac{-120+119.53242237987}{-2}

g=\frac{-239.53242237987}{-2}\text{ or }g=\frac{-0.46757762013}{-2}

g=119.76621118\text{ or }g=0.2337888

g\approx 120\text{ or }g\approx 0.23

We will take the larger value for the number of gizmos.

Therefore, the company must sell 120 gizmos each week in order to break even.

5 0
3 years ago
Sealy company has beginning raw materials inventory $12,000, ending raw materials inventory $15,000, and raw materials purchases
Tanzania [10]
Beginning 12,000 + Purchases 170,000 - Ending 15,000 = 167,000 Direct materials used $ 167,000
3 0
4 years ago
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