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djverab [1.8K]
3 years ago
6

You are the purchasing manager and you buy a raw material having the following information: Annual demand = 2000 units Fixed ord

er quantity = 200 units Order cost = $100 / order Inventory carrying cost = 25% Per unit purchase cost = $10 / unit Safety stock = 20 On average, what is the dollar value of inventory that you will have for this material?
Business
1 answer:
dimulka [17.4K]3 years ago
7 0

Answer:

<h2>Cost of Inventory = 1000 + 200 = $1200</h2>

Explanation:

Total Demand = 2000

Fixed order quantity = 200

No. of orders to meet this demand = 2000/200 = 10

Cost per order = $100

Total cost of 10 orders = 10 * 100 = $1000

Safety stock = 20

Per unit cost = $10

Cost of safety stock = 20 * 10 = $200

Total inventory = 2020 (Demand + Safety stock)

<h2 /><h2>Cost of Inventory = 1000 + 200 = $1200</h2>
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You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per s
dimulka [17.4K]

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

8 0
3 years ago
If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 10 percent
Misha Larkins [42]

Answer:

 c. $360 increase in excess reserves and a $40 increase in required reserves

Explanation:

Required reserves is the amount of reserves that is required by the Central bank that banks should keep.

Required reserve = reserve ratio × deposit

= 0.1 × $400 = $40

Excess reserve is the amount of reserves kept in excess of the required reserves.

Excess reserve = Deposit - Required reserve = $400 - $40 = $360

I hope my answer helps you

4 0
3 years ago
ACES is a quality auditing firm. It has dedicated a team of managers, business analysts, and system analysts to develop an infor
ivann1987 [24]

Answer: (4) Requirement analysis

Explanation:

 The requirement analysis is one of the process of determine the actual user expectation for building the new product with the help of new modifications.

The requirement analysis is one of the phrases of SDLC (Software development life cycle). The requirement analysis is also known as requirement engineering.

According to the question, the requirement analysis is one of the software development life cycle phase in which the information system are produced by using the report according to the organization quality.

Therefore, Option (4) is correct.

3 0
3 years ago
Vinson Company purchased a patent for $180,000 at the beginning of Year8, and estimated that its expected useful life was 5 year
Alona [7]

Answer:

amortization expense is $36000

Explanation:

given data

purchased = $180000

time = 5 year

to find out

amount recorded as amortization expense

solution

we know here purchased  patent  for 180000 and here life is 5 years

so here

amortization expense will be purchased / time

amortization expense =  purchased / time

amortization expense = 180000 / 5

so amortization expense is $36000

6 0
3 years ago
Labor-augmenting (improving) technology causes which of the following? (i) The marginal productivity of labor increases. (ii) Th
OleMash [197]

Answer:

Answer to this is both option (i) and option (iii).

Explanation:

Change in technology generally affects the change in productivity as well as the change in labor demand. In the case of Labor-augmenting (improving) technology, it is found that the positive change in technology leads to the increasing marginal productivity of labor. This increase of marginal productivity of labor shifts the labor-demand curve towards right. Thus, Labor-augmenting (improving) technology causes marginal productivity of labor to increase which further leads to shifting of the labor-demand curve towards right.

5 0
3 years ago
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