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disa [49]
3 years ago
6

4. A company makes bicycles. It produces 450 bicycles a month. It buys the tires for bicycles from a supplier at a cost of $20 p

er tire. The company’s inventory carrying cost is estimated to be 15% of cost and the ordering is $50 per order. Calculate the Economic Order Quantity (EOQ). Then from this solution, also calculate the number of orders per year, and average annual ordering cost.
Business
1 answer:
Sever21 [200]3 years ago
3 0

Answer:

Explanation:

a. 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,

Carrying cost = $20 × 15% = 3

And, the annual demand = 450 bicycles ×  12 months × 2 tyres = 10,800

And, the ordering cost is $50

Now put these values to the above formula  

So, the value would equal to

= \sqrt{\frac{2\times \text{10,800}\times \text{\$50}}{\text{\$3}}}

= 600 tires

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $10,800 ÷ 600 tires

= 18 orders

c. The average  annual ordering cost would equal to

= Number of orders × ordering cost

= 18 orders × $50

= $900

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Answer:

$10.82

Explanation:

The computation of one share of stock is shown below:-

Expected dividend = Annual dividend × (1 + Growth rate)

= $1.42 × (1 + 1.3%)

= $1.42 × 1.013

= $1.44

Stock value = Expected dividend ÷ (Required return - Growth rate)

= $1.44 ÷ (14.6% - 1.3%)

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Therefore for computing the stock value we simply applied the above formula.

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Globally, ethical codes of conduct are becoming more sophisticated and accessible. O True O False
allochka39001 [22]

Answer:

True .

Explanation:

Business ethics tell us what is right and wrong, what is good and bad, what is fair and unfair. Business ethics are very important for any company. They help a company to improve there image in front of people. Business ethics is a part of society , business uses its resources ,so its become the moral value of business to do something for society.

Whenever a company do something good for society , then it improves its image in public .

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If business do not work ethically then government also interfere . So to avoid government interference , to build good public image it is necessary for businessman to work ethically.

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Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rat
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The increase in US interest rates relative to the British interest rate would cause the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.

<h3>Why would the demand for dollars increase and the dollar appreciate?</h3>

When the interest rates of the US increases relative to that of the Britain, investors would earn a higher rate of return relative to that of Britain. As a result, investors would prefer to invest in the US.

When there is an increase in the demand for the US dollars relative to the Swiss franc, the US dollars would appreciate.

To learn more about interest rates, please check: brainly.com/question/26164549

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1 year ago
On April 1, 20X4, Kew Co. purchased new machinery for $300,000. The machinery has an estimated useful life of five years, and de
Afina-wow [57]

Answer:

The answer is B. $180,000

Explanation:

The sum of years' digits method is an accelerated depreciation that is based on the assumption that the productivity of the asset decreases with time.

Here, the sum of the digits are found. In this question, useful life is 5 years. So the sum of the digit is:

5+4+3+2+1 = 15.

April 1 20X4 through March 31 20X6 is 2 years.

First year depreciation is:

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Answer:

Texting has replaced many types of communication

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