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Aleksandr [31]
3 years ago
9

A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. the cost to order napkins is $200.00 per

order and the annual carrying cost for one box of napkins is $1.00. if the restaurant orders the economic order quantity then the total annual inventory cost for napkins is
Business
1 answer:
ra1l [238]3 years ago
8 0

y=x+200

x is the number of napkins times the cost (one dollar).

y=62500+200

y= $62,700

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Answer and Explanation:

The computation is shown below;

a.

Inventory Unsold in Hand (90-45) 45

Unit cost Unsold (45 × 480) $21,600.00

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Value of Inventory (21600 + 425) $22,025.00

b.  

Sale value (45 × 780) $35,100.00

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Unit cost Sold (21600+425) -$22,025.00

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3 years ago
Pop Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of
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Answer:

The increase in earnings is $136511.56

Explanation:

Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:

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However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:

Interest=($274149-$44617)*8%

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Conclusively, the increase in earnings is $118149+$18362.56

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