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Andrei [34K]
3 years ago
6

Company C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier

who charges Company C&A $30 per order and $50 per bottle. Company C&A’s annual holding cost percentage is 40%. Assume Company C&A operates 50 weeks in a year. What order quantity minimizes Company C&A’s total ordering and holding cost per year? A. 300 B. 212 C. 42 D. 30
Business
1 answer:
Katen [24]3 years ago
3 0

Answer:

A. 300

Explanation:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Annual demand = 600 bottles × 50 weeks = 30,000 bottles

Carrying cost per bottle = $50 × 40% = $20

And, the ordering cost per order is $30

Now put these values to the above formula  

So, the value would equal to

= \sqrt{\frac{2\times \text{30,000}\times \text{\$30}}{\text{\$20}}}

= 300 bottles

Hence, option A is correct

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Hilton company reported net income of $30,000 for the year. During the year, accounts receivable increased by $7,000, accounts p
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a. $25,000

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The computation of net cash provided by operating activities is shown below:-

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Net Income                                                $30,000

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The ________ phase of the strategic marketing process usually results in a(n) ________ that sets the direction for the marketing
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Your client has been given a trust fund valued at $1.07 million. He cannot access the money until he turns 65 years old, which i
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percent rate = 5.0 % divided by 12 = 0.417.

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future value = 1, 070,000  × ( 1 + 0.417 )  ∧ 360

future value = 3.33065667 E 60

At age 65, the value 3.33065667 E 60 will be the  present monthly withdrawal at $28,500.

present value of ordinary annuity, = annuity ( 1 - (1 + r) ∧ -n ÷ r

= 3.33065667 E 60  = 28500 (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

= 3.33065667 E 60 ÷ 28500  = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

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Solving further, we discovered that n= 285.

Therefore, the number of months it will last one he start to withdraw the money is 285 month

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