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AlekseyPX
3 years ago
6

Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40%

of the $11 unit cost and that annual demand is about 235 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $___________per order (round your response to two decimal places)
Business
1 answer:
defon3 years ago
4 0

Answer:

Its action would be optimal given an ordering cost of $28.31 per order

Explanation:

According to the given data we have the following:

economic order quantity, EOQ= 55 units

annual demand, D=235

holding cost per one unit per year, H=40%×$11=$4.4

ordering cost, S=?

In order to calculate the ordering cost we would have to use the following formula:

EOQ=√(<u>2×D×S)</u>

                (H)

Hence, S=<u>(EOQ)∧2×H</u>

                     2×D

           S=<u>(55)∧2×4.4</u>

                   2×235

          S=<u>13,310</u>

                470

          S=$28.31

Its action would be optimal given an ordering cost of $28.31 per order

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If a balance exists in the temporary moh account at the end of the​ period, it can be ignored for purposes of preparing the​ com
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Manufacturing overhead is a cost listed below the cost of income, in this case, referred to as the price of products synthetic. It's far something of a trap-all term for the expenses needed to run the facilities to manufacture the business's products intended on the market.

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If someone owes you $100 right now, but they don't pay you for a year, you have lost the opportunity to collect _______________o
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The Bureau of Labor Statistics has found that the base-year expenditures of the typical consumer break down as follows:
Shkiper50 [21]

Answer:

  • <em><u>The CPI for the current year is    104.49   </u></em>

<em><u /></em>

Explanation:

A) Expenditure breakdown of the base year:

You must check that they add 100%

  • Food and beverages:               17.8%
  • Housing:                                   42.8%
  • Apparel and upkeep:                 6.3%
  • Transportation:                          17.2%
  • Medical care:                               5.7%
  • Entertainment:                              4.4%
  • Other goods, and services:       5.8%
  • Total                                          100.0%

Total: 17.8 + 42.8 + 6.3 + 17.2 + 5.7 + 4.4 + 5.8 = 100

Thus, the CPI of the base year is 100.

<u>B. Expenditure breakdown of the current year.</u>

Calculate the changes by adding the percent of increase to each item tha has changed.

1. <u>The prices of food and beverages have increased by 10 percent</u>:

  • 17.8% × 1.10 = 19.58%

2.<u> The price of housing has increased by 5 percent</u>:

  • 42.8% × 1.05 = 44.94%

3. <u>The price of medical care has increased by 10 percent</u>:

  • 5.7% × 1.10 = 6.27%

The other prices are unchanged.

Then, the new breakdown is:

  • Food and beverages:               19.58%
  • Housing:                                   44.94%
  • Apparel and upkeep:                 6.3%
  • Transportation:                          17.2%
  • Medical care:                              6.27%
  • Entertainment:                              4.4%
  • Other goods, and services:        5.8%
  • Total                                           104.49%

Of course the new total is not 100%.

  • 19.58 + 44.94 + 6.3 + 17.2 + 6.27 + 4.4 + 5.8 = 104.49

That means that the price of the total basket of products has increased from 100 to 104.49.

Thus, <u>the CPI of the current year is 104.49 ← answer</u>

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3 years ago
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