The following information relates to last year's operations at the Legumes Division of Gervani Corporation:

A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is:

ruslelena [56]

Answer: three times as large

Explanation:

Economic order quantity will be calculated as follows:

EOQ = ✓(2DS/H)

D = Demand in units

Here S = Ordering cost = $10

H = Holding cost

Since S = $10

Therefore, EOQ will be:

= ✓(2DS/H)

= ✓(2 × 10 × D/ H)

= ✓(20D/H)

Since we're to increase the order cost from $10 per order to $90 per order, then EOQ will be:

Since S = $90

Therefore, EOQ will be:

= ✓(2DS/H)

= ✓(2 × 90 × D/ H)

= ✓(180D/H)

3✓20DH

The revised EOQ will then be 3 times as large.

4 0

3 years ago

Davidson international has 13,700 shares of stock outstanding at a price per share of $28. the firm has decided to repurchase 50

alexdok [17]

The shareholder equity is equal to:

$28/share * 13 700 shares = $ 383,600

This is the total capital of Davidson International. Now, assuming that there is no additional income since it is not implied in the problem, the total equity does not change. However, the shares become: 13,700 + 500 = 14 200 shares.

Price per share now becomes:

$383 600 / 14 200 shares = $27/share

6 0

3 years ago

Ryan Lock had planned his trip to the Olympic Games in Rio de Janeiro, Brazil, for many months. He had budgeted-saved-$15 comm

WITCHER [35]

Answer:

He should have exchanged the dollars for real in January 2016 to maximize his Brazilian spending. The exchange rate in January will result to highest Real (BRL) of R$<em>59,463.00</em>

Explanation:

To arrive at R$ equivalent of $15,000 on monthly basis, since BRL=1.00 USD, multiply R$ exchange rate each month by $15,000.

For January, 3.9642*15,000= R$59,463.00

February 3.8402*15,000= $57,603.00, etc.

Solution

S/N Month BRL=1.00 USD BRL Equivalent(R$)

1 January 3.9642 59,463.00

2 February 3.8402 57,603.00

3 March 3.6086 54,129.00

4 April 3.6851 55,276.50

5 May 3.5843 53,764.50

6 June 3.5493 53,239.50

7 July 3.2331 48,496.50

8 Aug-08 3.2312 48,468.00

8 0

3 years ago

How did speculative investing weaken the stability of the stock market?

tiny-mole [99]

<span>Heavy speculation is a bad idea in any market since it has a tendency to inflate prices to unrealistic levels. That is basically what many investors prior to the Great Depression did when they thought the market would keep going higher and higher. They borrowed money, sold their houses, etc.. to buy into the stock market thanks to that kind of speculation without even considering the underlying reasons for why the market is there in the first place.</span>

7 0

2 years ago

What determines the amount of tax revenue generated from oil and natural gas produced in Texas?

erastovalidia [21]

Answer:

in Texas, the amount of oil and natural gas produced together with the market price determines the amount of tax to be generated.

7 0

3 years ago