Answer:
D. the routine service.
Explanation:
Single cost driver rate: It is a cost assigned to each unit of cost driver activity directly. Cost driver also influence other business activity and effect the total cost incurred.
In the given case, Business offer both routine and specialized service, as we know single cost driver influence driver directly, therefore, cost driver of specialized service will overprice the routine service.
Answer:
Total cost= $650,857
Explanation:
Giving the following information:
At an activity level of 6,900 units in a month, Zeus Corporation's total variable maintenance and repair cost is $408,756, and its total fixed maintenance and repair cost is $230,253.
<u>We need to calculate the total cost of 7,100 units. Because it is between the relevant range, fixed costs will remain the same. We need to determine the unitary variable cost.</u>
Unitary variable cost= total variable cost/ unit
Unitary variable cost= 408,756/6,900= $59.24
Total cost= 59.24*7,100 + 230,253= $650,857
Answer:
a. high value and high demand.
Explanation:
Since the skillful supply chain manager declared she would not only disaggregate cycle inventory, but she would also aggregate safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory and fast mode when using safety inventory for her product that had high value and high demand.
Generally, when dealing with the transportation of goods that has high value and high demand, it is necessary and important that manufacturers or suppliers use the fast mode in order to meet up with their consumer's increasing demand. Simply stated, an increase in the demand for goods and services should be met with an increased supply, so as to reach equilibrium.
For the safety inventory, which are extra level of goods carried for the purpose of mitigating consumer demand that exceeds the amount forecasted by the manufacturer or supplier in a given period of time.
She decided, she would use a fast mode of transportation for safety inventory of goods with high value and high demand.
The replenishing cycle inventory involves the process of restocking or resupplying a retailer and distributor, when they place a replenishment order.
Answer:
Total PV= $15,103.49
Explanation:
Giving the following information:
Cf1= 4,500
Cf2= 5,700
Cf3= 8,000
Discount rate= 9%
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
PV= FV/(1+i)^n
Cf1= 4,500/(1.09)= $4,128.44
Cf2= 5,700/1.09^2= $4,797.58
Cf3= 8,000/1.09^3= $6,177.47
Total PV= $15,103.49
