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3 years ago

The process of determining the probability that potential customers will not pay is called:

1 answer:

5 0

The process of determining the probability that potential customers will not pay is called "credit analysis".

Credit analysis is a sort of analysis an investor or bond portfolio chief performs on organizations or other obligation issuing substances to gauge the element's capacity to meet its obligation commitments. The credit investigation looks to recognize the suitable dimension of default chance related with putting resources into that specific substance.

The result of the credit analysis will figure out what hazard rating to appoint the obligation guarantor or borrower. The hazard rating, thus, decides if to stretch out credit or advance cash to the obtaining substance and provided that this is true, the sum to loan.

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A liquid company produces hand sanitizer which has demand of 300,000 units per year.

jarptica [38.1K]

Answer:

EOQ = = 15,491.93 units

Optimal order interval 18.8 days (19.36 orders in year)

Total cost = $150,774.60

Explanation:

The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.

It is computed using he formulae below

EOQ = √ (2× Co× D)/Ch

Co- ordering cost per order- 20,

Ch -Holding cost per unit per annum- 10%× $0.5= 0.05

Annual demand: D- 300,000

EOQ = √(2× 20 * 2,580)/(10%× 0.5)

= 15,491.93 units

Assuming 365 days, the optimal order interval in dates

Number of orders per year

= annual demand/EOQ

= 300,000/ 15,491.93

= 19.36 times

in days:

= EOQ/300,000 × 365 days

= (15,491.93/ 300,000) × 365 days

= 18.8 days

Total annual cost =

Total cost Purchase cost + Carrying cost + ordering cost 

Purchase cost = $0.5 × 300,000 = 150,000

Carrying cost = (15,491.93/2) * 10%*0.5 = 387.29

Ordering cost = (300,000/15,491.93 ) × 20 = 387.29

Total cost 150,774.60

5 0

3 years ago

If you start a business would you rather start off with earning 1million every week and 10,000 an hour or just earn 1 million in

Verizon [17]

Answer:

Im going with either 1million a day or 10k an hour

4 0

2 years ago

It costs Bluffton Company $18.20 of variable costs and $7.80 of fixed costs to produce its product that sells for $39. Cointreau

Vikentia [17]

Answer:

increase by $15,600

Explanation:

Fixed cost remains constant throughout a period. If production is through the use of idle capacity, fixed cost will not change.

Change is income will result from the total contribution margin realized from the special order.

The total contribution margin is the contribution margin per unit multiplied by total units.

Contribution margin per unit = special offer price - variable costs

=$23.40- $18.20

=$5.20

change in income will be $5.20 x 3000

=$15,600 increase

6 0

2 years ago

The following situations refer only to the preceding data; there is no connectionbetween the situations. Unless stated otherwise

jek_recluse [69]

Answer:

If prices are cut by $0.2 then the operating income will increase by $91,200.

Explanation:

Current Gross Profit is :

Revenue [240,000 * $6] = $1,440,000

Cost of Sales = $1,416,000

Gross Profit = $24,000

If selling price is reduced to $5.80

Revenue $5.80 * [ 240,000 * 1.10 % ] = $1,531,200

Cost of Sales $1,416,000

Gross Profit = $115,200

6 0

3 years ago

A business plan is

bonufazy [111]

Answer :

. a proposed firm's goals, strategy for achieving them, and standards for measuring success.

Explanation:

A business plan is a proposed firm's goals, strategy for achieving them, and standards for measuring success.

The business plan outlines how the firm will meet it set goals and objectives and the strategy it will use in achieving them. It must also include how the firm will measure it's success.

It is a written orderly statement of the firm's goals ,methods of achieving the set goals and how it will measure its achievement.

Business plan gives the organisation a sense of purpose.

4 0

3 years ago