1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
raketka [301]
3 years ago
6

Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $

400. Carrying cost is estimated to be 20% of the unit costs, and the ordering is $25 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount?
Business
2 answers:
ololo11 [35]3 years ago
8 0
Thank you for posting your question here. I hope the answer helps. 
If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. I think yes, Wang <span>should take the quantity discount.</span>
Hoochie [10]3 years ago
5 0

Answer:

Wang should take the quantity discount

Explanation:

Total minimum cost for both cases i.e. with and without discount is evaluated.

1. Without the discount

Demand - 1,400 units

Ordering cost - $25 per order

Cost of detector- $400

Carrying cost - 20%

Applying EOQ formula: √ (2*1,400*25)/(400*20%) = 29.580

Total cost = (400*1400) + (1400*25*2/29.580) = 562,366

2. With discount

Demand - 1,400 units

Ordering cost - $25 per order

Cost of detector i.e. 400 x 20%- $380

Carrying cost - 20%

Applying EOQ formula: √ (2*1,400*25)/(380*20%) = 30.3488

Applying variables to obtain total cost as in 1 above = 543,516.67

Therefore, since total cost is lower after the discount, Wang should take the quantity discount.

You might be interested in
If the supply of a good increased, what would be the effect on the equilibrium price and quantity?
kakasveta [241]

Answer:

An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.

5 0
3 years ago
A donor gave equipment valued at $90,000 at the beginning of 2020 to a private not-for-profit organization. The equipment had a
Slav-nsk [51]

The net asset would be $81,000 or $0 depending upon the policy of the Non-Profit Organization.

<h3><u>What is a Non-Profit Organization?</u></h3>
  • A non-profit organization is a group that was established with the intention of making a profit, and in which no part of the organization's revenue is given to its directors, officials, or members.
  • "Non-stock corporations" are a common moniker for nonprofit organizations.
  • They may be organized as a corporation, a sole proprietorship, an unincorporated association, a partnership, a foundation, a condominium, or another type of individual enterprise (for instance, individual charitable contributions) (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts).
  • When they are established, nonprofit organizations must declare themselves to be so and are only allowed to work on projects that fall under their legal definition.

The value of the equipment given by the donor = $90,000

The charge of depreciation = $9,000.

The total assets of a business less the total liabilities equals the entity's net assets. The sum of a company's net assets equals its stockholders' equity in whole. Net assets are divided into unrestricted and restricted net assets of a nonprofit organization.

The net asset would be either $81,000 or $0.

Know more about Non-Profit Organization with the help of the given link:

brainly.com/question/21307064

#SPJ4

5 0
2 years ago
The most affective communicaters speak at the rate of ...... words per minute?
jasenka [17]
A. i am pretty sure it is A.



8 0
3 years ago
Beginning on January 1, 2020, 5 equal deposits are to be made in a fund. Required: Using the appropriate tables, determine the e
8090 [49]

Answer:

Explanation:

FV \div \frac{(1+r)^{time} -1}{rate} = C\\  

FV  $200,000.00  

time 5 years

rate 0.1% = 10/100 = 0.10

200000 \div \frac{(1+0.1)^{5} -1}{0.1} = C\\  

C  $ 32,759.496  

The installment will generate 10% interest overtime and provide with a 200,000 dollar count after six years

7 0
3 years ago
Please think of one example of a product that you use on a regular basis for which some of the cost of production or consumption
Lelu [443]

Answer and explanation:

Externalized costs are costs that the society pays that are generated by producers and the consumers of the product. The common example is the use of petrol. If I own a car and I don't like riding bicyle for smaller distances, this means the Carbon dioxie emission caused due to me have to be born by the society. This means that the net effect would be a loss to society caused by the usage of products that are injurious to our ecosystem.

UK has targeted to achieve zero Carbon dioxide emission by 2050, which shows their commitment to social responsibility and we keep dumping things in the oceans because nobody acknowlegdes the damage caused by using plastic made products and also not recycling it. After plastic into the oceans the marine life suffers. The Carbon Dioxide emission is one of the main reasons why the glaciers are melting and many animals are dying annually. We unaware with our responsibilities to our society and love profits no matter if someone dies or get harmed by the operations of the company or using products that have greater externalized costs.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Job-order costing would be more likely to be used than process costing in situations where many different products or services a
    13·1 answer
  • A company that wishes to increase the quality of its products should opt for _____, a branch of management science that provides
    7·1 answer
  • Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2018. Du
    15·1 answer
  • At the East Haven Fire Department the stress of the situation, the dispatcher’s reaction to those situations, and the impact of
    7·1 answer
  • To adjust debt and institute a repayment plan, Bianca-who is not a corporation, a partnership, ora family farmer or fisherman-ma
    6·1 answer
  • Noah, age 65, and Ella, age 54, are married. They elect to file Married Filing Jointly.
    11·1 answer
  • Moss exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $ 600,000 an
    15·1 answer
  • On January 1, 2016, Wade Corporation had 24,000 shares of common stock outstanding. On April 1, it reacquired 2,400 shares; on J
    10·1 answer
  • The following are budgeted data: January February March Sales in units 16,000 22,000 19,000 Production in units 19,000 20,000 18
    9·1 answer
  • On January 1, 2021, Morris Enterprises issued 9%, 5-year bonds with a face amount of $900,000 at par. Interest is payable annual
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!