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schepotkina [342]
3 years ago
5

Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying cost per pot are estim

ated to be 30 percent of the cost and ordering costs are $20 per order. The manager has been using an order size of 1500 flower pots.
a. What additional annual cost is the shop incurring by staying with this order size?

b. Other than cost savings, what benefit would using the optimal order quantity yield?
Business
1 answer:
Sonbull [250]3 years ago
6 0

Answer:

a. What additional annual cost is $2250

b. Other Benefits of optimal order quantity - Reduces Obsolescence of Stock

Explanation:

The additional annual cost that Garden Variety Flower is <em>the Holding or Carrying Cost</em> of Inventory

Holding or Carrying Cost = Order Quantity/ 2 × Carrying Cost per Unit

Holding Cost at the Usage Level = ( 750/2) × ($2×30%) = $225

Holding Cost at Current Usage = ( 1500/2) × ($2×30%) = $450

Additional Holding Cost                                                   = $2250

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Adding a chart to the header of a form will result in a(n)
Sonbull [250]

Answer:

Chart without a legend.

Hope this helped.

8 0
3 years ago
In 2016, Joshua gave $12,500 worth of XYZ stock to his son. In 2017, the XYZ shares are worth $25,000. What is the total amount
Elina [12.6K]

Answer:

$12,500

Explanation:

Calculation for the total amount removed from Joshua’s estate in 2017

Since we were told that In 2016, Joshua gave the amount of $12,500 to his son in which in the same year which was 2017, the XYZ shares are worth the amount of $25,000 which means that the total amount removed from Joshua’s estate in 2017 will be $12,500 ($25,000-$12,500).

8 0
3 years ago
An investor is given the two investment alternatives (Assets A and B) with the following characteristics: Asset Expected Return
kow [346]

Answer:

12.00%

Explanation:

As per the given question the solution of standard deviation of a portfolio is provided below:-

Standard deviation of a portfolio = √(Standard deviation of Product 1)^2 × (Weight 1)^2 + Standard deviation of Product 2)^2 × (Weight 2)^2 + 2 × Standard deviation of product 1 × Standard deviation of product 2 × Weight 1 × Weight 2 × Correlation

= √(0.165^2 × 0.6^2) + (0.068^2 × 0.4^2) + (2 × 0.6 × 0.4 × 0.165 × 0.068 × 0.7)

= √0.009801  + 0.0007398  + 0.00376992

= √0.01431076

= 0.119628592

or

= 12.00%

So, we have calculated the standard deviation of a portfolio by using the above formula.

3 0
3 years ago
Anybody wanna zoom ?
Ne4ueva [31]

Answer:

sorry i have school but others day maybe tomorrow

5 0
3 years ago
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7 0
3 years ago
Read 2 more answers
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