Answer:
The appropriate solution is:
(a) 2828 cases each time
(b) $4005656.85
(c) $3609800
Explanation:
The given values are:
Annual demand,
D = 200,000 cases
Per case cost,
C = $20
Carrying host,
H = 
= $
Ordering cost,
S = $40
(a)
The economic order quantity will be:
⇒ 
On substituting the values, we get
![=\sqrt{[\frac{(2\times 200000\times 40)}{2} ]}](https://tex.z-dn.net/?f=%3D%5Csqrt%7B%5B%5Cfrac%7B%282%5Ctimes%20200000%5Ctimes%2040%29%7D%7B2%7D%20%5D%7D)
(b)
According to the question,
The annual ordering cost will be:
= 
= 
= 
($)
The annual carrying cost will be:
= 
= 
= 
($)
The annual purchase cost will be:
= 
= 
= 
($)
Now,
The total inventory cost will be:
= 
= 
($)
(c)
According to the question,
Order quantity,
Q = 10000 cases
Per case cost,
C = $18
Carrying cost,
H = 
= 
The annual ordering cost will be:
= 
= 
= 
($)
The annual carrying cost will be:
= 
= 
= 
($)
The annual purchase cost will be:
=
= 
= 
Now,
The total cost of inventory will be:
= 
= 
($)
Answer: Understated by $7 million
Explanation:
Cost of goods old is calculated by deducting the closing balance of inventory from the Opening balance and the Purchases for the period in the manner:
Cost of Goods sold = Opening inventory + Purchases - Closing stock.
Going by the formula, if the opening inventory is understated by $7 million, the cost of goods sold will be understated by the same amount because opening inventory adds to Cost of goods sold.
Answer:
Paid $436 to the state sales tax department for taxes collected
An OPERATIONAL DEFINITION is a description of how the researchers will measure the variable of interest. The operational definition of a variable refers to the specific technique which will be used to measure that variable in the research study. Establishing an operational definition will help the researcher to eliminate any gray area that might arise later.
Answer:
$11.59 million
Explanation:
The computation of earning before interest and tax is shown below:-
Free cash flow = Operating cash flow - Investment in operating cash flow
$8.17 million = Operating cash flow - $2.17 million
Operating cash flow = $10.34 million
For calculating the earning before interest
Operating cash flow = Earning before interest - Taxes + Depreciation
$10.34 million = Earning before interest - $2.17 million + $0.92 million
= $10.34 million = Earning before interest - $1.25 million
Earning before interest = $11.59 million
