Answer:
a. 320 units
b. $1,920
Explanation:
EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit
= √ (2 × 3,000 units × $102.40 / ($30 × 20%))
= 320 units
total inventory cost = ordering cost + holding cost
= 3,000 units/ 320 units × $102.40 + 320 units/ 2 × ($30 × 20%
= $960 + $960
= $1,920
Answer:
True.
Explanation:
‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.
The cash flow from operating activities is generally more than the net income after taxes.
The cash flow from operating activities includes only the cash transactions relating to the operations of the business. It ignores the non-cash transactions. On the other hand, net income is derived after deducting all the expenses (paid or unpaid) from the revenue earned, pertaining to a particular period.
Example: Depreciation expense is a non-cash transaction. It is treated as follows:
While calculating cash flow from operating activities, depreciation expense is ignored (added back to the net income) as it is a non-cash transaction.
On the other hand, depreciation expense pertaining to the accounting period is deducted from revenue to calculate net income after taxes.
Thus, the cash flow from operations is generally more than the net income after taxes.
Answer:
the probability that it was started by a man is 69%
Explanation:
65% companies were started by men
24% of 65% had revenues above $100,000
24% x 65% = 15.6% of the total number of companies started last year had revenues of more than $100,000 and were started by men.
35% companies were started by women
20% of 35% had revenue above $100,000
20% x 35% = 7% of the total number of companies started last year had revenues of more than 100% and were started by women.
total percentage of companies that had revenues above $100,000 = 7% + 15.6% = 22.6%
15.6/22.6 = 69% started by men
7/22.6 = 31% started by women
Answer:
a) The volume of output at which both the locations have the same profit is 140
Explanation:
We are looking for the quantity produced that give us the same profit.
First we have to get the equation of profit in both location.
Profit function
P(x) =Revenue- Total cost P(x) =(Px * Q)-(FC + vc*Q)
Where
FC=Fixed cost
vc=unitary variable cos
Q=produce quantity
Px=Price
Q=produce quantity
<u>Bonham Profit</u>
P(x) =(Px * Q)-(FC + vc*Q)
P(x) =(29000 * Q)-(820000 + 13000*Q)
<u>McKinney Profit</u>
P(x) =(29000 * Q)-(960000 + 12000*Q)
To find the Q where both profit are equal
(29000 * Q)-(820000 + 13000*Q)=(29000 * Q)-(960000 + 12000*Q)
29000 * Q-820000 -13000*Q=29000 * Q-960000 - 12000*Q
We put all the numbers multiple by Q in the same term
29000 * Q-29000* Q -13000*Q - 12000*Q=820000 -960000
-1000*Q=-140000
Q=140
