Answer:
introduction stage
Explanation:
it's making me have 20 characters so it's just introduction stage to introduce a new product
Answer
D) compared to the EOQ, the maximum inventory would be approx 30% lower.
Explanation
EOQ = √(2*Co*D/Cc)
EPQ= √ (2*Co*D/(Cc*(1-x)))
x=D/P
D = demand rate
P =production rate
Co=ordering cost
Cc=holding cost
1) The production rate would be about double the usage rate.
hence, P = 2D
x=D/2D=0.5
EPQ= √ (2*Co*D/((1-0.5)*Cc))
EPQ= √ (2*Co*D/0.5Cc)
EPQ=√ (1/0.5)*EOQ
EPQ=√ (2)*EOQ
EPQ=1.41*EOQ
Hence, EPQ is around 40% larger than EOQ.
Ans.: c) EPQ will be approximately 40% larger than the EOQ.
2) Compared to the EOQ, the maximum inventory would be
maximum inventory = Q
EPQ = 1.41 EOQ
EPQ = 1.41*Q
Q=EPQ/1.41
Q=0.71 EPQ
Hence, compared to EOQ, maximum inventory in EPQ is only 70% of that in EOQ model.
Answer:
Explanation:
<u>The first step</u> will be get the contribtuion margin:
800,000 - 6000,000 = 200,000
This is the amount after variables cost used to pay the fixed cost and make a gain.
Second, we calcualte the contribution margin ratio
200,000/800,000 = 0.25
Per dollar of sales 25 cents are available to pay the fixed cost.
Now, we calculate the break even point in dollars
