Answer:
245 units reduction.
Explanation:
What is safety stocks?
Safety stocks can be defined as the extra stock that is been kept by business organizations in order to minimize their risk. One can not successfully say that an amount of a material will be need at a particular period of time by the consumers and this is the reason many companies or industries or business organizations do keep safety stocks in their inventory.
So, let us proceed in to solving the question.
The parameters given in the question are; lead time = 5 weeks, standard deviation of demand during the lead time = 85 units, desired cycle-service level = 99%.
We can calculate the value of units for the Reduction in safety stocks by using the formula below;
Reduction in safety stocks=safety stocks - revised safety stocks.
Reduction in safety stocks = 443 - (2.33 × 85 units × 1 week lead time)
Reduction in safety stocks = (443 - 198) units = 245 units.
Note that 2.33 is from the 99% service level) and the 443 is from the 5 weeks lead time which can be Calculated using; (maximum daily usage × maximum lead time in days) - (average daily usage) × average lead time in days.
Answer:
See below
Explanation:
It is to be noted that under IFR, inventories are carried at a lower of cost or net realizable value, which is $550,000 in this scenario.
Also, under the United states GAAP, inventories are carried at a lower of cost or market . Here, the replacement cost of $525,000 would be used because it is below NRV and its equal to the difference between NRV and normal profit margin.
Answer:
$125,000
Explanation:
Zwick company bought 25,000 shares of Handy corporation
In 2021 Handy corporation reported $208,100 net income
The cash dividend reported is $5.00 per share on all its 208,000 shares
Therefore the Zwicks company dividend revenue from Handy corporation in December 2021 can be calculated as follows
= 25,000 shares × $5.00
= 125,000
Hence Zwick's dividend revenue from Handy corporation is $125,000
