C) create an effective marketing plan for customers
Answer:
400
Explanation:
Calculation to determine the economic order quantity is using the basic EOQ model,
Using this formula
EOQ=√(2[Demand][Order cost] / [Unit holding cost])
Where,
Demand=320
Order cost =$1,000
Unit holding cost =$4
Let plug in the formula
EOQ=√2*320*1,000/$4
EOQ=√640,000/$4
EOQ=√160,000
EOQ=400
Therefore the economic order quantity is using the basic EOQ model is 400
Answer
D. It aids in meeting a future obligation
Explanation
I believe sinking fund is a way used by companies to pay off borrowed money by using a bond issue through payments made periodically before it matures. This means is used by companies to settle future loan repayment agreements that it made with lending agencies. Company uses sinking fund technique to entice investors because the fund convince stakeholders of the firm on issues of default payment
Answer:
c. $600 interest expense and zero cash outflow from operating activities.
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × number of months ÷ total number of months in a year
= $36,000 × 5% × 4 months ÷ 12 months
= $600
This four months are calculated from September 1 to December 31
In the income statement, the interest expense is recorded for $600 but in the operating activity there is no effect
<span>To optimize the performance of her painting products, Vivian should </span>subdivide the product group and move budget allocation to the best performing products. Product group can be organized for all products. The groups can be categorized by brand or product category.