Answer:
Quantity discounts can be taken advantage of for large lot sizes.
Explanation:
The EOQ model assumptions:
the order of one item does not intervene with the other.
The order will arrive without delay and with a specific amount of goods.
no losses or damage in transit
The EOQ does not consider the discount for large lot size, their formula does not consider the value of the goods:
Its use: Demand of the good
cost of Setup, or ordering cost.
and Holding cost, the cost of keeping the inventory
There is no variable to account for discounts for order size in this method
Answer:
No of units 6,000 7,500 10,000
Total fixed cost $12,000.00 $12,000.00 $12,000.00
Total variable cost $9,000.00 $11,250.00 $15,000.00
Total cost $21,000.00 $23,250.00 $27,000.00
Fixed cost per pizza $2.00 $1.60 $1.20
Variable cost per pizza $1.50 $1.50 $1.50
Average cost per pizza $3.50 $3.10 $2.70
Answer:
Explanation:
To answer this question, we first need to calculate the marginal utility per dollar for doughnuts. Recall that the marginal utility per dollar for a good is the marginal utility divided by the price of the good (=MU/P). For the first doughnut we have 10 (=10/$1), the second doughnut 9(=9/$1), third 9, fourth 8, fifth 7, sixth 6, seventh 5, eighth 4, ninth 3, tenth 2 and eleventh 1. The marginal utility per dollar for every cup of coffee is 5.5 (=5.5/$1). To determine how big the budget would have to be before Omar would spend a dollar buying his first cup of coffee, we compare the marginal utility per dollar values. Omar will purchase the first doughnut before he buys a cup of coffee because the marginal utility per dollar for the doughnut is greater than the marginal utility per dollar for the cup of coffee (10>1.5). The same is true for the second through the eighth doughnut. This implies Omar will buy 8 doughnuts at the price of $1 before he buys his first cup of coffee. Therefore his budget will need to $9 before he buys his first cup of coffee, $8 on the doughnuts and $1 for the cup of coffee.
Answer: $8
Answer:
patent on the consolidated estament: 32,000
Explanation:
45,000 x 80% = 36,000
36,000 / 9 = 4,000 amortization per year
patent of Grand heaven
<u> debit credit </u>
36,000 recognize at purchase
4,000 december 31th amortization
32,000 balance.
Answer:
E. How much cash should the firm keep in reserve?
Explanation:
- The working capital is the capital decision that is a decision that the firms take to combine the policies and the techniques for the management. And also state how the form should keep and use its resources or reserves and also is a measure of the liquidity of the firm and gives the inventors more information to the analysis.
