1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marina86 [1]
2 years ago
15

A manufacturing company uses 1000 non-returnable special pins a month, which it purchases at a cost of $2 each. The manager has

assigned an annual holding cost of 20 percent of the purchase price per pin. Ordering cost is $40 per order. Currently the manager orders 500 pins at a time. How much could the firm save annually in ordering and holding costs by using the EOQ? (Round the final answer to 2 decimal places.) 309.83 619.68 676.15 728.34 None of the above
Business
1 answer:
zloy xaker [14]2 years ago
3 0

Answer:

Total amount of be saved = $180- $178.8 =$1.11

Explanation:

<em>To determine the amount of savings , we will subtract the total inventory cost under the current order size of 500 units from the total cost using the EOQ.</em>

EOQ is the oder quantity that minimizes carrying cost and ordering cost.

Total cost of the current order size of 500 unit

Currently the total cost = Annual ordering cost + Annual holding cost

 <em>Annual ordering cost= (Demand/order size) × Ordering cost per order</em>

                               =(1000/500) × $40 = $80

<em>Carrying cost = holding cost per unit per annum × order size/2</em>

                      = 20% × $2 ×  (500/2)= $100

Total cost =80+ 100 = $180

Total cost using EOQ

EOQ is calculated as follows:

EOQ = (2× Co D)/Ch)^(1/2)

Co- ordering cost Ch - holding cost, D- annual demand

EOQ = √(2× 40×1000/20%×2

EOQ = 447.21 units

Total cost of inventory

Ordering cost = (1000/447.21)×40 = 89.4427191

Holding cost =  (447.21/2) * 20% × 2=  89.4427191

Total cost =89.44 + 89.44 = 178.8

Total amount of be saved = $180- $178.8 =$1.11456

You might be interested in
The Industrial Revolution was characterized by a(n) Group of answer choices migration of manufacturing jobs from the Midwest and
Komok [63]

The Industrial Revolution was characterized by the increased emphasis on production which resulted to a longer hours and less job security for most workers.

<h3>What is an Industrial Revolution?</h3>

This was a period that experienced a rapid development of industry because of the introduction of machinery.

The Industrial Revolution was characterized by use of steam power, growth of factories, mass production etc

Therefore, the Option A is correct.

Missing options "A. increased emphasis on production, resulting in longer hours and less job security for most workers.

B. migration of manufacturing jobs from the Midwest and Northeast to the South as firms began locating in areas where labor costs were lower.

C. rapid improvement in the wages and working conditions of most workers, resulting in a decline in the need for labor unions.

D. movement away from scientific management, and a greater acceptance of the ideas of Herzberg and Maslow."

Read more about Industrial Revolution

<em>brainly.com/question/13323062</em>

6 0
2 years ago
What is the residual value of a leased vehicle
strojnjashka [21]
The vehicles worth at the end of its lease.
6 0
3 years ago
Vandy Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance
Burka [1]

Answer:

See below the statement of Cash flow from Vandy Corporation.

Explanation:

Vandy Corporation

Statement of Cash Flow

CASH FLOW FROM OPERATING ACTIVITIES:

Net Income                                                                                     $104

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation on Fixed Assets ($349-$319+$12)                             $42

Gain on Sale of Equipment                                                              ($16)

(Increase) Decrease in Current Assets:

Accounts Receivables                                                                       $12

Inventory                                                                                             $2

Increase (Decrease) in Current Liabilities:

Accounts Payable                                                                              ($1)

Accrued Liabilities                                                                              ($1)

Income taxes payable                                                                        $4

Net Cash provided by Operating Activities                                $146

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of Equipment                                                    $18

Purchase of Property, plant and equipment ($684-$550+$14)     ($148)

Net Cash Flow from Investing Activities                                      ($130)

CASH FLOWS FROM FINANCING ACTIVITIES:

Bonds Payable                                                                                       $13

Issuance of Common Stock                                                                   $1

Payment of Dividends                                                                       ($28)

Net Cash from Financing Activities                                                ($14)

Net Increase (Decrease) in Cash                                                        $2

Opening Cash Balance                                                                       $29

Ending Cash Balance                                                                           $31

6 0
3 years ago
What is accounting ​
andre [41]

Answer:

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows. Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and presenting the results in various reports and analyses. Accounting is also a field of study and profession dedicated to carrying out those tasks.

Explanation:

4 0
3 years ago
Olivia is ordering trendy necklaces and earrings made with semi-precious stones from a supplier in Belize, for her city boutique
PtichkaEL [24]

Answer:

<u>b. False</u>

<u>Explanation:</u>

<em>Remember, </em>the term social responsibility in this context refers to an individual doing what would benefit society first, over any gain he may derive if he does otherwise.

For example, we are told that there is "low paying wages in Belize," which means low worker welfare, thus, even if no labor laws were been broken in his country, Olivia has a social responsibility to pay fair prices for the necklaces and earrings.

5 0
3 years ago
Other questions:
  • You sell $4,000 per week in bags of dog food at 30% margin. You sell $3,000 per week in dog toys at 45% margin. Which generates
    8·1 answer
  • The windows 10 desktop has controls, also known as its ____, that allow you to interact with the windows 10 operating system.
    8·1 answer
  • Which activity is a part of personal financial planning?
    15·2 answers
  • This problem has been solved! See the answer In September of 1998, your father purchased a Michael Jordan basketball card for $0
    5·1 answer
  • PLZ HELP THIS IS DUE IN A FEW HOURS!
    5·1 answer
  • When is a stock split more likely to occur?
    8·1 answer
  • Restaurant A uses 60 bags of potatoes each month. The potatoes are purchased from a supplier for a price of $80 per bag and an o
    8·1 answer
  • Thornton Universal Sales' cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 50% of its mon
    7·1 answer
  • One year ago, the Jenkins Family Fun Center deposited $4,500 into an investment account for the purpose of buying new equipment
    14·1 answer
  • "Firms in the monopolistically competitive movie industry face excess capacity. This means that there are ________ movies than t
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!