Answer:
Safety Stock is 336.62 units
Explanation:
As per given data
Demand = D = 50,000
Ordering Cost = S = $35
Holding Cost = H = $1 per unit per year
Weekly Demand = Demand / 50 weeks = 50,000 / 50 = 1,000 units per week
Weekly Demand during Lead time of 3 weeks = 1000 x 3 = 3,000 units
Standard Deviation = 216.51 units
Desired Service level = 94%
The Z score at 94% service level is 1.55477
Safety Stock = Zscore x standard deviation = 1.55477 x 216.51
Safety Stock = 336.62
Answer:
Annual ordering cost=$32.142
Explanation:
Annual ordering cost = Annual demand/order quantity × ordering cost per order
Annual demand = 15 × 12 = 180 units
Kindly note that there are 12 months in year.
Annual Ordering cost = 180/28 × $5= $32.142
Annual ordering cost=$32.142
Answer:
$2,300,000
Explanation:
The formula to compute the operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - operating expenses - depreciation expense
= $7,000,000 - $4,000,000 - $1,000,000
= $2,000,000
And, the income tax expense is
= $2,000,000 × 0.35
= $700,000
So, the value would equal to
= $2,000,000 + $1,000,000 - $700,000
= $2,300,000
We simply applied the above formula
Answer:
The answer is letter A.
Explanation:
The first thing she should do is to __decide on the purpose of her proposal.________.
Answer:
Amount of inventory transferred=$197,600
Amount of inventory in work in process=$39,900
Explanation:
Amount of inventory transferred=Number of units*cost per unit
cost per unit= material cost per unit+ conversion cost per unit
=$9+$4
=$13
Amount of inventory transferred=15,200*13=$197,600
Amount of inventory in work in process=3,500*9*100%+3,500*4*60%
=$39,900
