I will give brainliest if correct

A restaurant Soup4u uses 60 bags of tomatoes each month. The tomatoes are purchased from a supplier for a price of $80 per bag a

HACTEHA [7]

Answer:

a) Reduction in ordering cost to 1/9 of it current value

Explanation:

EOQ = √(2SD/H)

S = ordering cost = $20
D = annual demand = 60 x 12 = 720 bags
H = annual holding cost = $80 x 40% = $32

EOQ = √[(2 x $20 x 720) / $32] = 30

if you want to reduce inventory to 1/3 of its current value, then the order quantity should be 30 x 1/3 = 10 units per order

a) Reduction in ordering cost to 1/9 of it current value

EOQ = √[(2 x $20/9 x 720) / $32] = 10 ✓

inventory is decreased to 1/3 of current level

4 0

3 years ago

What the beneſts or disadvantages of corporations

Temka [501]

Answer: Advantages of a corporation include personal responsibility protection, and easier access to bigger things. Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow...

3 0

3 years ago

Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. A share of stock sells fo

Tju [1.3M]

Answer: Price of stock at year end =$53

Explanation:

we first compute the Expected rate of return using the CAPM FORMULAE that

Expected return =risk-free rate + Beta ( Market return - risk free rate)

Expected return=6% + 1.2 ( 16%-6%)

Expected return= 0.06 + 1.2 (10%)

Expected return=0.06+ 0.12

Expected return=0.18

Using the formulae Po= D1 / R-g to find the growth rate

Where Po= current price of stock at $50

D1= Dividend at $6 at end of year

R = Expected return = 0.18

50= 6/ 0.18-g

50(0.18-g) =6

9-50g=6

50g=9-6

g= 3/50

g=0.06 = 6%

Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.

Price of stock = D( 1-g) / R-g

= 6( 1+0.06)/ 0.18 -0.06

=6+0.36/0.12

=6.36/0.12= $53

3 0

3 years ago

Speculative investments are high-risk investments with the possibility of high returns in a short period of time.

bixtya [17]

<span> <span>True. Risk in investment can be defined as the possibility that the investor may lose a big portion or all of the initial investment or make very high returns in a short period. Risk which is often likened to volatility dictates that the higher the volatility the higher the chances of returns. Speculative investments such as leveraged ETFs(commodities such as gold, oil, silver), options, venture capital trusts are considered high risk and often so offer handsome returns or cost the investor all or even more of their initial capital. It is however important to note that high risk does not automatically translate into high returns. The intrinsic value of the investment vehicle among other factors need to be considered in depth to determine if the investment is worth the risk</span></span>

8 0

3 years ago

Read 2 more answers

Depreciation Methods Clearcopy, a printing company, acquired a new press on January 1, 2019. The press cost $173,400 and had an

kvv77 [185]

Answer:

The computations are shown below:

Explanation:

The computations are shown below:

1. a) Straight-line method:

= (Original cost - expected residual value) ÷ (expected life)

= ($173,400 - $15,000) ÷ (8 years)

= (158,400) ÷ (8 years)

= $19,800

In this method, the depreciation is same for all the remaining useful life

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 8

= 12.5%

Now the rate is double So, 25%

In year 1, the original cost is $173,400 so the depreciation is $43,350 after applying the 25% depreciation rate

(c) Units-of-production method:

= (Original cost - residual value) ÷ (estimated production)

= ($173,400 - $15,000 ) ÷ ($4,500,000 pages)

= ($158,400) ÷ ($4,500,000 pages)

= $0.0352

Now for the first year, it would be

= Production pages in first year × depreciation per page

= 675,000 pages × $0.0352

= $23,760

2. The book values are as follows

As we know that

Book value = Purchase cost - accumulated depreciation

a) Straight-line method:

= $173,400 - $19,800

= $153,600

(b) Double-declining balance method:

= $173,400 - $43,350

= $130,050

(c) Units-of-production method:

= $173,400 - $23,760

= $149,640

,

6 0

3 years ago