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Answer:
Annual Savings will be ;
Ordering Cost = $2,993.88
Holding Cost = $661.78
Explanation:
First Calculate the Economic Order Quantity (EOQ)
EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit
= √ ((2 × 783× 12 × $31) / ($11 × 32%))
= 407
Note : Currently the firm orders at 783 crates per month
Savings in Ordering Cost will be :
Savings = Ordering Cost at Current Quantity - Ordering Cost at EOQ
= (Total Demand / Current Quantity × Ordering Costs) - (Total Demand / Current Quantity × Ordering Costs)
= (9396/783 × $31) - (9396/407 × $31)
= $2,993.88
Savings in Holding Cost will be :
Savings = (Current Quantity - Economic Order Quantity) / 2 × Holding Cost per unit
= (783 - 407) / 2 × ($11 × 32%)
= $661.78
Answer:
$400,000
Explanation:
The compensation expense to be recognized in 2021 is portion of the options value for one year.
Total value of the options=200,000*$6=$1,200,000
Compensation expense per year=fair value of the options/vesting period
fair value of the options is $1,200,000
vesting period is 3 years
compensation expense per year=$1,200,000/ 3 years=$400,000
The $400,000 compensation expense is debited to compensation expense account and credited to paid in capital-stock options $400,000 for each of the vesting period until the paid in capital -stock options account balance becomes $1,200,000 at end of year 3
Answer:
Increase / Increase.
Explanation:
Increase purchases of the U.S securities by the Denmark investors will place an increase on both the demand for U.S. dollar and international value of U.S. dollar since the business is done with the U.S dollar.
A farmer sells wheat at a price of $5 per bushel. If the farmer sells 100 bushels, his total revenue is $500 and his average revenue is $5 .it cannot change its quantity of output.
Revenue, which is determined by multiplying the average sales price by the quantity of units sold, is the money made from regular business operations. The top line (or gross income) figure is what is used to calculate net income by deducting costs. Sales are another name for revenue in the income statement.
The amount made per unit of output is referred to as average revenue. In other words, it is the money the seller makes from each commodity unit that is sold. Divide the entire revenue by the total output to get the average revenue for a company.
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