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3 years ago

Economic Order Quantity computes:

Business

1 answer:

Mamont248 [21]3 years ago

7 0

Answer:

D: Optimum Order size

Explanation:

Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.

Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.

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When cash is received from sales, the change in the owner’s equity is usually recorded.

Vedmedyk [2.9K]

<u>The change in the owner's equity</u> is often documented in a separate revenue account when cash is received from sales.

<h3><u>What Is Revenue?</u></h3>

Revenue, which is determined by multiplying the average sales price by the number of units sold, is the money made from routine business operations. It is the top-line (or gross income) figure from which costs are deducted to calculate net income. On the income statement, revenue is referred to as sales.

Revenue is the money that a business generates via its operations. Depending on the accounting method used, there are various methods for calculating revenue. Sales made on credit will be included in revenue for products or services delivered to the client in accrual accounting. Revenue may be recognized in accordance with certain regulations even though payment has not yet been made.

Learn more about revenue with the help of the given link:

brainly.com/question/13595937

#SPJ4

5 0

2 years ago

Delta airlines is consider purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million a

taurus [48]

Answer:

$2.26 million

Explanation:

Plane A:

Initial outlay = $100 million

Annual cash flows = $30 million

Expected life = 5 years

Cost of capital = 12%

EAW = (r x NPV) / [1 - (1 + r)⁻ⁿ]

Using a financial calculator: NPV = $8.14 million

EAW = (12% x $8.14) / [1 - (1 + 12%)⁻⁵] = $0.9768 / 0.432573 = $2.2581 ≈ $2.26 million

5 0

3 years ago

On July 1, 2017, Wyler Company placed a new asset into service. The cost of the asset was $90,000 with an estimated 9-year life

Drupady [299]

Answer:

$9000

Explanation:

Depreciation is a systematic allocation of the cost of an asset over its useful life. One method of depreciation is the straight line method where the value of an asset is uniformly and gradually written off over its useful life

<u>Working</u>

Cost of asset - $90000

Useful life - 9years

Salvage value - $9000

Fiscal year - (Jan 1- Dec 31)

Depreciable amount- (90000-9000)= $81000

Annual depreciation (straight line ) 81000/9 = $9000

December 31 2017 depreciation expense = $9000*1/2 = 4500

Decemebr 31 2018 depreciation expense = $9000

5 0

3 years ago

You deposit a $100 check from a friend in your account. A couple of days later, you buy $45.20 worth of groceries and pay with a

igomit [66]

Answer:

The correct answer is, $121.2

Explanation:

You went for grocery and paid the bill through check.

Amount of grocery purchased: $45.20

You check bounced and you owe bank $25 because you didn't have much balance in your account that you paid for the groceries.

Your bank did an additional transaction of debiting your account with $25 for the bouncing of your check.

Grocery store sent you the letter to tell that you owe them $25 for the bounced check

You will have to pay again $45.20

Money order fee: $1

So the amount that you actually spent on groceries would be:

$45.2(real grocery amount) + $25(you owe to bank for bouncing your friend's check) + $25( Your check bounced) + $25(grocery store charged due to bounced check) + $1(money order)

= $121.2

So you are actually charged $ 121.2 for the groceries.

5 0

4 years ago

What is the value of Yutter's stock at the end of Year 1 using the dividend discount model assuming that the dividend payout rat

Blizzard [7]

Answer:

$557,000

Explanation:

Note: <em>Missing word is attached as picture below</em>

Retention Ratio = (Net Income - Dividends) / Net Income

Retention Ratio = (12500 - 3000) / 12500

Retention Ratio = 9500 / 12500

Retention Ratio = 0.76

Retention Ratio = 76%

Sustainable equity growth rate = Retention Ratio * Return on Equity

Sustainable equity growth rate = 76% * 15%

Sustainable equity growth rate = 11.40%

Expected dividend per share = Current Year Dividend *(100 + Growth Rate)%

Expected dividend per share = 3000 * (100+11.4)%

Expected dividend per share = 3000 * 111.4%

Expected dividend per share = 3342

Value of Stock = Expected dividend per share / (Cost of capital equity - Dividend growth rate)

Value of Stock = 3342 / (12% - 11.40%)

Value of Stock = $557,000

3 0

3 years ago