Answer:
a.385 stones
b.349 stones
c.168 stones
Explanation:
Order quantity that minimizes total annual cost is known as the Economic Order Quantity.
<em>Economic Order Quantity = √(2 × Annual Demand × Ordering Cost per Order) / Holding Cost per unit</em>
= √(2×28×110×$48) / $2
= 384.5 or 385 stones
<em>Economic Order Quantity = √(2 × Annual Demand × Ordering Cost per Order) / Holding Cost per unit</em>
= √(2×28×110×$48) / ($8.10 × 30%)
= 348.8 or 349 stones
Re-oder point is the point at which the order should be placed to obtain additional inventories
<em>Reorder Point = Lead Time × Usage</em>
= 6 days × 28 stones
= 168 stones
Answer:
Daily saving (NPV) is $33
Annual saving is $12,045
Explanation:
1.What is the NPV of accepting the lockbox agreement?
The total about to be deposited in bank lockbox per day = average receipt size * number of checks per day
= $135 * 7,300 = $985,500
The daily interest to be received = $985,500 * 0.016% = $158
Daily saving (NPV) = Interest received – lockbox fee = $158 - $125 = $33
2. What would the net annual savings be if the service were adopted?
Annual saving = daily saving * 356 days = $33 * 365 = $12,045
Answer:
Financial intermediation
Explanation:
The feature described is referred to as financial intermediation. These banks and financial institutions borrow money from lenders and lend to the companies that need capital for investment. By doing these, they provide safety in accessing money and spread the risks. It is basically channelling savings to investments by intermediary institutions which include insurance companies, credit unions and pension funds.
Answer:
d. 2,854.05 shares
Explanation:
$74,000/22,000 = [$74,000 − 128,000(.075)]/X
X = 19,145.94 shares
Shares repurchased = 22,000 − 19,145.94
Shares repurchased = 2,854.05 shares