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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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c. book value per share.

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3 years ago
Everett Company has outstanding 30,000 shares of $50 par value, 6% preferred stock and 70,000 shares of $1 par value common stoc
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Answer:

See explanation section.

Explanation:

Requirement A

If the preferred stock is cumulative, cash dividends paid to each class of stock is as follows:

1st year = Cash dividend's for common stock = $0

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As there is no declaration of cash dividend for the first year.

As the preferred stock is cumulative, preferred dividends for the first year will be given in the 2nd year.

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Requirement B

If the preferred stock is non-cumulative, cash dividends paid to each class of stock is as follows:

1st year = Cash dividend's for common stock = $0

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"A registered representative has a long-term client who works in a bank. The representative tells the client that he wants to bu
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Answer:

None

Explanation:

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