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-BARSIC- [3]
3 years ago
9

Aberwald Corporation expects to sell 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initial

ly) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying cost is 20%, and the cost of placing an order with its supplier is $15.
(a) What is the Economic Ordering Quantity?
(b) What is the maximum inventory of fertilizer?
(c) What will be the firm%u2019s average inventory?
(d) How often must the company order?
Business
1 answer:
UNO [17]3 years ago
4 0

Answer:

Annual demand (U) = 90.000 bags

Cost of each bag = $1.50

Inventory carrying cost per unit(C) = $1.50 × 20% = 0 30

Ordering cost per unit (O) = $15

Part A)

EOQ = \sqrt{\frac{2UO}{C}}

EOQ = \sqrt{\frac{2 * 90000 * 15}{0.30}}

EOQ = \sqrt{9000000}

EOQ = 3,000

Part B)

Maximum inventory = EOQ + Safety inventory on hand  

Maximum inventory = 3000 + 1000

Maximum inventory = 4.000

Part C)

Average inventory = Maximum inventory + Minimum or Safety /2

Average inventory = 4,000 + 1,000 / 2

Average inventory =2,500

Part D)

How often company order = Annual demand / EOQ

How often company order = 90,000 / 3.000

How often company order = 30

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Answer:

There are multiple theories, nobody can be 100 percent sure how but here are 2 main theories:

Explanation:

-Lightning strikes a nearby tree, which catches fire. Frightened but inspired, these cavemen venture out, bring burning sticks back into their cave and learn to use fire.

-They may have used pieces of flint stones banged together to created sparks. They may have rubbed two sticks together generating enough heat to start a blaze.

6 0
3 years ago
Value Electronics, Inc. started its operations on January 1, 2019.
elixir [45]

Answer:

The first step in operating cycle would be to purchase inventory from vendors.

The correct answer is D

Explanation:

The steps involved in operating cycle includes:

1. Purchase of inventory from vendors

2. Sale of goods to customers

3. Recording of sales in accounts                                                    

4. Collection of cash from customers                                

3 0
3 years ago
1.2 Explain the concept of the labour market to a Grade 12 school-leaver. Give a
Marianna [84]

Answer:

The labor market is the phrase used to describe the supply of labor by employees and demand of labor by the employers as such there is an interaction between the workers and the employers where wage is paid to the workers by the employers for the labor the workers supplied

Being educated gives an employee the capacity to be more productive and gives an indication of the potential of prospective employees to recruiters and employers. Therefore, qualifications attained are an advantage when seeking employment alongside many several other job seekers

Therefore, a grade 12 school-leaver competing for a job alongside several others with similar or tertiary education is less likely to secure a desired job or vocation

However, with a tertiary education, such job seekers would more readily convince recruiters about their ability to satisfactorily perform their desired job

Explanation:

6 0
3 years ago
On January 1, Collins Corporation had 800,000 shares of $10 par value common stock outstanding. On March 31, the company declare
mash [69]

Answer:

Total Stockholders' equity was affected.

Explanation:

Stock dividend refers to distributing shares free of cost among the existing shareholders. Such a dividend does not result in resources flowing out of the entity but merely reassign amounts from retained earnings to other equity accounts. Thus, such a dividend does not affect the total equity of the stockholders. This can be seen through the following entry,

Retained Earnings     $1,800,000 Dr

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      Paid in Capital in excess

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The above transaction shows that we just redistributed the reserves by reducing retained earning by the value of stock dividend 1800000 [( 800000*0.15) * $15]  and adding it to the Common Stock 1200000 [(800000*0.15) * 10] and to paid in capital in excess of par 600000 [(800000*0.15) * 5].

6 0
3 years ago
What is the uses of trading, profit and lost account​
Len [333]
The profit and loss account is used to determine the net profit of the business. The starting point for the profit and loss account is the balance carries down from the trading account which is the gross profit of business. Hope this helped you out...
4 0
3 years ago
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