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evablogger [386]
3 years ago
14

Suppose you purchase from a supplier at $4 per unit a part with which you assemble red widgets. on average, you use 50,000 units

of this part each year. every time you order this particular part, you incur a sizable ordering cost of $800 regardless of the number of parts you order. your cost of capital is 20% per year.
Business
1 answer:
joja [24]3 years ago
4 0

The problem is missing some parts:

First, how many parts should you purchase each time you place an order.

H=.2*$4 = $0.80

S= $800

R = 50,000

 

Q = 2SRH

= 2(800) (50000) (.8)

= 10,000 units

 

The second question is how many timer per year will you place orders.

Required order = R/Q

= 50000/10000

= 5 times

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Explanation:

There will definitely be a bright future in the business because the targeted population which happens to be the elderly ones keeps increasing in size, hence, there will be increase in sales and in turn there will be increase in turnover which is a good thing for the business.

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2 years ago
What advice would you give to anyone who thinks they are going to be terminated from their employment?
nalin [4]

Answer:

✓ Do not panic

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✓Don't trust everything your boss says

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4 0
2 years ago
What do we call risks in the absence of controls and after controls have been implemented?.
SashulF [63]

Risk that exists both before and after controls have been put in place is known as inherent risk.

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8 0
2 years ago
What is the beta of msft? [hint: look under "key statistics"]. if the risk-free rate (rf) is 5% and the market risk premium e[rm
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6 0
3 years ago
The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight fo
defon

Answer:

Loma Group Inc.

Paid-in Capital Portion of the Stockholders' Equity:

Common Stock, 320,000 issued at $14 stated value

,   $4,480,000.00

Paid-In Capital in Excess of Stated Value-Common Stock  525,000.00

Preferred 2% Stock, $120 par                                            8,400,000.00

Paid-In Capital in Excess of Par-Preferred Stock                  210,000.00

Total Paid-in Capital                                                        $13,615,000.00

Explanation:

a) The Paid-In Capital in Excess of Stated Value-Common Stock:

As per trial balance       $480,000.00

Treasury Stock                  45,000.00

Total                              $525,000.00

b) The Paid-in Capital of the Stockholders' Equity is the element of Stockholders' Equity that includes only the paid-in capital (cash and other assets) received from stockholders.  This portion excludes the Retained Earnings and the memorandum record of the authorized share capitals.

8 0
3 years ago
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