Law is a practical discipline: theory has no place in law . With specific references of the Law of Contract , discuss

The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20%

Vilka [71]

Answer:

or ordering quantity 1-9,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*2.95)) = 1594.48201

Optimal ordering quantity will not be in this range as calculated EOQ is beyond the range

For ordering quantity 10-999,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*2.5)) = 1732.050808

Optimal ordering quantity will not be in this range as calculated EOQ is beyond the range

For ordering quantity 1000-4999,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*2.3)) = 1805.787796

Total annual cost = ordering cost + holding cost + purchase cost = (10000/1805.787796)*75+(1805.787796/2)*(20%*2.3)+10000*2.3 = 23830.66239

For ordering quantity 5000 or more,

EOQ = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = sqrt((2*10000*75)/(20%*1.85)) = 2013.468166

EOQ is adjusted upwards to 5000 to avail the discount

Total annual cost = ordering cost + holding cost + purchase cost = (10000/5000)*75+(5000/2)*(20%*1.85)+10000*1.85 = 19575

So, optimal ordering quantity = 5000

Firm should pay $1.85 per unit

Annual cost at the optimal behavior = 19575

Explanation:

5 0

3 years ago

Barton Industries expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 4

Gekata [30.6K]

Answer: See explanation

Explanation:

The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:

= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate

= 2.00/[20.00 × (1 - 4.5%)] + 4.2%

= 2.00 /[20.00 × (1 - 0.045)] + 0.042

= 2.00 / (20.00 × 0.955) + 0.042

= (2.00/19.10) + 0.042

= 0.104712 + 0.042

= 0.146712

New cost of equity = 14.67%

You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%

6 0

3 years ago

Company acquired land and buildings for $1,000,000. The land is appraised at $450,000 and the buildings are appraised at $800,00

kirill [66]

Answer:

Debit Land for $360,000

Debit Buildings for $640,000

Explanation:

The total acquisition cost has to be allocated based on the appraisal value of each of the Land and Buildings.

Therefore, the amount to be debited to the Land and Buildings accounts can be calculated as follows:

Total acquisition cost = $1,000,000

Land appraisal value = $450,000

Buildings appraisal value = $800,000

Total appraisal value = Land appraisal value + Buildings appraisal value = $450,000 + $800,000 = $1,250,000

Amount allocated to Land = (Land appraisal value / Total appraisal value) * Total acquisition cost = ($450,000 / $1,250,000) * $1,000,000 = $360,000

Amount allocated to Buildings = (Buildings appraisal value / Total appraisal value) * Total acquisition cost = ($800,000 / $1,250,000) * $1,000,000 = $640,000

Therefore, the debits to the Land and Buildings accounts will be the allocated amounts to each as follows:

Debit Land for $360,000

Debit Buildings for $640,000

4 0

3 years ago

All of the following are steps in the marketing research process exceptA) collecting dataB) interpreting research findingsC) des

madreJ [45]

Answer: E- understanding your customer

Explanation: Marketing Research is the ability of an organisation to dig deep into its process of marketing and identifying problems that might affect the future of the organisation.

Most organisation do not take marketing research serious thereby cutting any budget set aside for this purpose. For a marketing research to be effective, there are processes to be followed and they are:

1. Identifying the problem

2. develop a marketing research plan

3. collect all relevant data

4. Analyse all data and report the findings

5.put your findings into action

8 0

3 years ago

. If you still donate the $100,000 from Problem 16 today, but ask the college to delay the scholarship payment so that the first

motikmotik

Answer:

The annual scholarship payment = $5,693.25

Explanation:

Data Given:

In this question, we are required to calculate the future value up till 9th year and then

Donating Amount = $100,000

Time period = 9 years

Note: Here in this question, interest rate is not given without which this question is incomplete. However, I have found similar question on the internet and will be using its interest rate to solve this question for the sake of understanding and concept.

So, the interest we use will be = 4%

Formula for the future value:

FV = Present Value $(1 + r)^{n}$

Present value = $100,000

n = 9 years

r = 4% = 0.04

FV = 100,000 $(1 + 0.04)^{9}$

FV = 100,000 x 1.4233118

FV = Future Value = $142,331.18

The annual scholarship payment = FV * r

The annual scholarship payment = 142,331.18 * 0.04

The annual scholarship payment = 5,693.247

The annual scholarship payment = $5,693.25

8 0

3 years ago