Answer:
a. The answer is:762 bottlé.
b. The answer is: 487 bottles.
Explanation:
a. The economic order quantity is calculated as: 
= 
= 762 units because: D = annual demand = Weekly demand x week opening per year = 134 x 52 = 6968; S = Cost per order = 25; H = Holding cost per unit = 15% x purchase price = 15% x 4 = 0.6
b. Inventory level to place order:
With the inventory system providing a 95 percent service probability, z level is 1.64 (using the NORM.S.INV function in excel).
So Inventory level to place order = 134 * 3 + 1.64 * 30 * 3^0.5= 487 bottles.
Answer: $495,000
Explanation: Opportunity cost can be defined as the cost of profits that were foregone by choosing one alternative over other. It is a part of economic cost and is not considered while calculating the accounting cost.
In the given case, company has to forego the sale of 3000 units due to the special order production, thus, the lost sale of those 3000 units is the opportunity cost of fulfilling the special order.
This, can be computed as follows :-
opportunity cost = 3000 units * $165
= $495,000
Answer: the difference between the exchange rate on the date of repatriation and the exchange rate used to translate the branch's pretax income.
Explanation:
Repatriation simply means converting of foreign currencies into local ones. Earning of income in foreign currencies, by a comoany are typically subject to risk regarding foreign exchange which could bring about a loss.
It should be noted that the exchange gain or loss on repatriated funds from a foreign branch is calculated when the nominal amount of the funds is multiplied by the difference between the exchange rate on the date of repatriation and the exchange rate used to translate the branch's pretax income.
The correct answer is all of the above. Multinational corporations grapple with a diversity of challenges when choosing training programs for their employees. These include choosing a program that is sensitive to the local culture and how to reconcile it with the global nature of the corporation. This also introduces the challenge of who should conduct the training.
