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Lapatulllka [165]
3 years ago
12

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly dem

and for these connectors is 15 comma 100 units. Southeastern estimates its annual holding cost for this item to be ​$23 per unit. The cost to place and process an order from the supplier is ​$77. The company operates 300 days per​ year, and the lead time to receive an order from the supplier is 3 working days. ​a) What is the economic order​ quantity? nothing units ​(round your response to the nearest whole​ number). ​b) What are the annual holding​ costs? ​$ nothing ​(round your response to the nearest whole​ number). ​c) What are the annual ordering​ costs? ​$ nothing ​(round your response to the nearest whole​ number). ​d) What is the reorder​ point? nothing units ​(round your response to the nearest whole​ number).
Business
1 answer:
Rashid [163]3 years ago
7 0

Answer:

A) economic order quantity ( order quantity model that will minimize the total holding cost and ordering costs ) = \sqrt{3*1500*77/23} = \sqrt{15065.21739} = 122. 74 ≈ 122 ( optimal ordering quantity ) units

B)  Annual holding cost = 23 * 122 / 2 = $1403

C ) Annual ordering costs = 1500/122 * 77 = $947

D ) The reorder point = daily demand * lead time = 50 * 3 = 150 units

Explanation:

Annual demand for connectors : 1500

ordering cost ( cost to place and process an order ) : $77

annual holding cost per unit : $23

A) economic order quantity ( order quantity model that will minimize the total holding cost and ordering costs ) = \sqrt{3*1500*77/23} = \sqrt{15065.21739} = 122. 74 ≈ 122 ( optimal ordering quantity ) units

B)  Annual holding cost = 23 * 122/2 = $1403

C ) Annual ordering costs = 1500 / 122 * 77 = $946.72 ≈ $947

D ) The reorder point = daily demand * lead time = 50 * 3 = 150 units

daily demand = 1500 / 300 = 50

lead time = 3

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Lelechka [254]

Answer:

The correct answer will be "$620".

Explanation:

It is important to note that certain principles are involved in the process of streamlining business processes, including:

  • Interpersonal skills of the organizational leaders.
  • Client focus entirely, defined objectives, accuracy, and so on., are encouraged.

The lowest cost will be:

= (15\times 8)+300+200

= 120+300+200

= 620 ($)

5 0
2 years ago
What is the best example of a short-run adjustment?
k0ka [10]

Answer:

Short-run economics primarily affect price.

Explanation:

When demand decreases for any reason, prices go down in the short term. When demand spikes, prices go up. ... Long-run adjustments occur when sustained increases or decreases in demand cause a business to change its practices and can affect both price and the means of production.

8 0
2 years ago
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When early settlers needed to buy farming equipment and supplies, they often would use the milk, eggs, and crops their farms pro
Tasya [4]

Answer:

The correct answer is A)

Explanation:

There is no good or service that is unlimited.

The concept of the Barter system was simply a method of exchanging value for value.

  • It was phased away due to several reasons:
  • It was not a good store of value as many of the goods were perishable
  • it didn't make for good administration: It was too cumbersome and problematic. Imagine having to store three trailers of eggs awaiting a barter exchange

Cheers!

3 0
3 years ago
firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each
Yuki888 [10]

Answer:

A Firm

The firm's WACC is:

= 12.16%

Explanation:

a) Data and Calculations:

                                              Common               Bonds

                                                  Stock

Outstanding shares/bonds  2,000,000              2,000

Market price per unit                $2                     $1,200

Total market value             $4,000,000   $2,400,000

Total value of debt and equity = $6,400,000

Weight                                      62.5%                37.5% ($2,400/$6,400*100)

Cost of bonds (coupon rate) = 10%

Tax rate = 34%

Firm's beta = 1.5

Risk-free rate = 5%

Market risk premium = 7%

After-tax cost of bonds = 6.6% (1 - 0.34) * 10%

Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

WACC = 15.5% * 62.5% + 6.6% * 37.5%

= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0
2 years ago
Emerald corporation's current ratio is 0.5, while ruby (emerald's competitor) company's current ratio is 1.5. Both firms want to
ruslelena [56]

Answer:

b. Only Emerald Corporation's current ratio will be increased.

Explanation:

Given that

Emerald current ratio is

= 0.5 i.e. = 0.5 ÷ 1

now in case when the current liability is doubles , so the current assets is

= 0.5 + 1 = 1.5

And, the cuurrent liabilities is

= 1 + 1

= 2

so new ratio is

= 1.5 ÷ 2

= 0.75

Now  

Ruby current ratio is

= 1.5

i.e. = 1.5 ÷ 1

Now in case when the current liability is doubled,

the current assets is

= 1.5 + 1

= 2.5

And, current liabilities is

= 1 + 1

= 2

Now new ratio is

= 2.5 ÷ 2

= 1.25

Therefore the emerald current ratio is rised from 0.5 to 0.75

And, the Ruby's ratio has decline from 1.5 to 1.25

7 0
3 years ago
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