Who wanna buy essay?

The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotiv

alexgriva [62]

Answer:

LEXINGTON TIRE provides a higher unit cost but, a lower inventory cost overall considering the ordering, holding cost, and administrative cost generated.

The company should pick LEXINGTON TIRE

Explanation:

LEXINGTON TIRE

SHIPPING QUANTITY PER SHIPMENT 2,000

SHIPPING COSTS 18,000

PRICE per TIRE 30

INVENTORY HOLD COSTS (H) 6.00

LEAD TIME (DAYS) 6

ADMIN. COSTS 15,000

Total cost: 25,000 / 2,000 = 12.5 per year

shipment cost: $18,000 per shipment x 12.5 per year = 225,000

Materials cost:

25,000 tires x $30 per tire = 750,000

Holding cost:

lead time + average inventory

6 days x 100 tires + 2,000 tires / 2 = 1,600 tires on average

times $6 holding cost = 9,600

Total cost: Inventory 225,000 + 750,000 materials + 9,600 holding + 15,000 admin

total 999,600

IRMO AUTO

SHIPPING QUANTITY PER SHIPMENT 1,000

SHIPPING COSTS 25,000

PRICE per TIRE 29(p)

INVENTORY HOLD COSTS (H) 5.80

LEAD TIME (DAYS) 4

ADMIN. COSTS 18,000

Shipping per year: 25,000 / 1,000 = 25

Ordering cost: 25 shipment x 25,000 = 625,000

Materials:

25,000 x 29 = 725,000

Holding:

lead time + average inventory

4 days x 100 + 1000/2 = 900 units on inventory throughout the year

Holding cost: 900 x $5.80 = 5,220

Total Inventory cost:

Ordering 625,000 + materials 725,000 + 5,220 holding + 18,000 admin

total = 1,355,220

7 0

3 years ago

Starting on your 25th birthday, and continuing through your 60th birthday, you deposit 750 each year on your birthday into a ret

Tanya [424]

Answer:

9.09%

Explanation:

With the payment for first term with interest rate for 5%. we choose to set up problem as ordinary annuity, then we should use 36 rent periods because term would start at one period before first deposit.

We have formula with resulting equation to find out future value of first annuity, that gives a value of an annuity on his 60th birthday:

Formula is as under

S = R((1 + i)^n – 1) / i

putting values we get

= $750((1 + 0.05)^36 – 1) / 0.05

S = $71,887.24

Because value of S is located Fred’s 65th birthday, now you can use such value as present value of fund compounded for Five years. Future value of these fund, will later be equated to present value of annuity-due, is given by following equation:

S = P(1 + j)^n where i=j and n=5 so…

S = $718,772.42(1 + j)^5

Now you calculate present value of annuity-due & equate it to equation just give.For annuity-due, went as rent payments of $5,800 each with effective interest rate of 4%. Because this payments occur each month & annuity-due lasts for 25 years, you have (25*12) periods= 300 periods. Further, You must calculate new interest rate, given by following equation:

(1 + .04)^1 = (1 + i(12)/12)^12 Therefore… i(12)/12 = 0.00327

Now calculate present value of annuity-due:

P = R(1 + i)(1 – (1 + i)^-n)

P = $5800(1 + .00327)(1 – (1 + .00327)^300) / .00327

P = $1,111,979.

Finally, equate earlier equation with the new present value:

$1,111,979.84 = $718,772.42(1 + j)^5

Therefore j = 9.09%

8 0

3 years ago

Four types of visual aids

lord [1]

Answer:

FOUR types of visual aids are, but not limited to, physical samples, models, handouts, pictures, videos.

3 0

3 years ago

Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its current level

Scrat [10]

Answer:

c. $60319000

Explanation:

My actual calculation was not exactly that number, it was NZ$60,318,000, but it is the closest option. You calculate it by multiplying the present value x (1 + interest rate) = $60,000,000 x (1 + 0.0053) = $60,000,000 x 1.0053 = $60,318,000

The question only asks to calculate the interest in NZ$, not to convert them to US$.

3 0

3 years ago

Kurt is a professional golfer, who use to work as an engineer. Aside from the money he enjoys both jobs equally. He earned $80,0

Irina-Kira [14]

Answer:Economic rent-$320,000

Opportunity Cost-80,000

Explanation:

Economic rent is the extra amount or addition earned by a production resource here and in this context,Mr Kurt is the resource.In this scenario,the extra amount he earned as a professional golfer having quit engineering for it and thus had a step-up(addition) of $320,000.

While the opportunity cost which known as the alternative forgone in order in favour of another alternative in a decision process here is $80,000.In this case,he had to forego engineering job($80,000) and therefore concentrate on professional golfing which paid him more(400,000) not omitting the fact that he could have engaged in the two jobs at same time.

3 0

4 years ago