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RideAnS [48]
3 years ago
6

A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.20 per stone for quantiti

es of 600 stones or more, $8.60 per stone for orders of 400 to 599 stones, and $9.10 per stone for lesser quantities. The jewelry firm operates 101 days per year. Usage rate is 19 stones per day, and ordering costs are $39. a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Order quantity stones b. If annual carrying costs are 21 percent of unit cost, what is the optimal order size
Business
1 answer:
Ket [755]3 years ago
4 0

Answer:

a. 274

b. 295

Explanation:

a. Optimum Order

Optimum Order = √( (2×Total Annual Demand×Ordering cost per order) / Holding Cost per unit)

                          = √ ((2×101×19×$39) / $2)

                          = 273.57

                          = 274

b. Optimum Order

Optimum Order = √( (2×Total Annual Demand×Ordering cost per order) / Holding Cost per unit)

                          = √ ((2×101×19×$39) / $8.20 ×0.21)

                          = 294.83

                          = 295

                   

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Answer:

Dr Bond investment   $50,000

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Dr cash                               $1,250

Cr interest revenue                            $1,250

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Explanation:

On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount

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4 0
3 years ago
The following information pertains to Torque Corp.'s outstanding stock for 2021: Common stock, $1 par value Shares outstanding,
azamat

Answer:

135,000 shares

Explanation:

The stock split is the re-denomination of the shares where the number of shares increases without a corresponding increase in shareholders' equity.For instance assigning two shares for each share had earlier with two new shares priced at the price of previous one share,however in calculating the number of shares applicable to basic earnings stock split is treated retrospectively,as if it has always been part of the company's shares

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7 0
4 years ago
A firm practicing third-degree price discrimination may:
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Answer:

(B) I and II 

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Second degree price discrimination is when consumers who buy in bulk are given discounts.

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I hope my answer helps you.

6 0
3 years ago
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5 0
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To know more about the Cost Pool Here

brainly.com/question/14347180

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4 0
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