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joja [24]
4 years ago
4

A car-service center orders new tires using a continuous review system. The expected demand is 420 tires per year, and the lead

time is one week, on average. The manager decides to hold safety stock of 20 tires. What is the reorder point? You should assume 52 weeks per year. a. 30 b. 20 c. 26 d. 28
Business
1 answer:
Deffense [45]4 years ago
6 0

Answer:

d. 28

Explanation:

The computation of the reorder point is shown below:

= Demand × lead time + safety stock

where, Demand equal to

= Expected demand ÷ total number of weeks in a year

= 420 tires ÷ 52 weeks

= 8.07692

So, the reorder point would be

= 8.07692 × 1 + $20

= 28 units

We simply multiplied the demand with the lead time and then added to the safety stock

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4 years ago
Match each type of tax with an example of its use.
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<u>Answer: </u>

Property tax: 1 percent charged on the  value of all residential  houses

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Sales Tax: 7 percent charged on the  purchase of all non- necessary goods

<u>Explanation:</u>

Property tax is the tax that is charged on the property that is being purchased based on the tax rates in that jurisdiction where the property is located in. The property can be building or land. The value changes based on the developments that take place in the surroundings.

Excise tax are charged on specific goods like fuel, alcohol and cigarettes . These are international taxes charged within the country. They are generally charged on businesses. They are not paid directly by the consumers.

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4 0
3 years ago
If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches t
AysviL [449]

Answer:

Floating cost adjustment is 3.25%

Explanation:

Flotation-adjusted cost of equity = (Expected dividend at the end of Year 1 / Net proceeds per share) + Growth rate.

Expected dividend at the end of Year 1 (D1) = $ 2.30 (given in question)

Net proceeds per share = (21.30 - 4 % of 21.30) = $ 20.448

Flotation-adjusted cost of equity = (2.30 / 20.448) + 0.04

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= 0.1525 i.e., 15.25 %.

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3 years ago
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2
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Answer:

a. First set of entries:

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Credit: Bad debt expenses with $2,000

b. Second set of entries:

Debit: Cash with $2,000

Credit: Account receivables $2,000

Explanation:

These entries will appear as follows in the book Gideon Company on July 10:

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Accounts receivable                              2,000

Bad debt expenses                                                            2,000

<em>Being the transfer of the bad debt recovered back to the accounts receivable.</em>

Cash                                                         2,000

Account receivables                                                         2,000

<em>Being the cash income received in respect of bad debt recovered.</em>

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3 years ago
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Know more about Samuel Beckett and Eugene Lonesco with the help of the given link:

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<u></u>

<u></u>

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