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Mamont248 [21]
3 years ago
10

Currently, a company has units of safety stock for a product located in warehouses. The company is contemplating expanding to wa

rehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional ​$ in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs ​$​, is the expansion to warehouses a potentially good​ idea?
Business
1 answer:
xz_007 [3.2K]3 years ago
3 0

Answer:

The full question is <em>"Currently, a company has 59,000 units of safety stock for a product located in 9 warehouses. The company is contemplating expanding to 28 warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $950,000 in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $4, is the expansion to 28 warehouses a potentially good idea? The proposed plan Y sense for the company because the change in total profit is $. Enter your response rounded to the nearest dollar and include a minus sign if appropriate.)"</em>

<em />

Current Total safety stock = 59,000

No. of warehouses = 9

Safety stock per warehouse = 59,000/9 = $6,555.56

New number of warehouses = 28

Increase in number of warehouses = 28 - 9 = 19

Increase in number of safety stock = 19 * 6,555.56 = 124,555.64

Cost of each unit of safety stock = $4

Cost of increased safety stock = $4 * 124,555.54

Cost of increased safety stock = $498,222.56

Additional revenue = $950,000

Since, additional revenue > additional cost of safety stock, the additional warehouses is a good idea.

Increase in profit = Additional revenue - Increased cost

Increase in profit = $950,000 - $498,222.56

Increase in profit = $451,777.54

Hence, The proposed plan makes sense for the company because the change in total profit is $451,777.54

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Answer:

A) Dr Supplies Expense $2,600

Cr Supplies $ 2,600

Explanation:

The supplies account had an opening balance of $ 2400. Purchases were made of $ 3000 so the total debit balance was $ 5400. The year end showed a debit balance of $ 2800.

So  $ 5400- $ 2800= $ 2600 Supplies were used and credited .

An expense account would be used to show this so

Supplies Expense is debited with $ 2600 and

Supplies Account is credited with $ 2600 showing a net debit balance of $ 2800 at the end of the year.

4 0
3 years ago
Which of the following would not be considered an external user of accounting data for the Julian Company?
Olin [163]

Answer:

D. Management

Explanation:

External users of accounting information are people outside an organisation that makes use of accounting information. They include : A. Internal Revenue Service agent

B. Creditors

C. Customers

Internal users of accounting information are people within an organisation that makes use of accounting information. They include:

A. Management

B. Owners

C. Employees

I hope my answer helps you

6 0
3 years ago
LO 7.2What operating budget exists for manufacturing but not for a retail company?
belka [17]

Answer:

Production Budget

Explanation:

Production Budget is usually substituted <em>with</em> Purchasing budget for a retail company.

The operating budget usually consist of the:

  • sales budget,
  • production budget,
  • manufacturing overhead budget.

However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted <em>with</em> Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they<em> substitute </em>the number of units to be purchased, to the number of units to be produced.

8 0
3 years ago
surfshack corp. buys surfboards, wetsuits, and surf wax from rip to shreds, inc. for sale to consumers. what type of company is
viva [34]

Buys surfboards, wetsuits, and surf wax from rip to shreds, inc. for sale to consumers. The type of company is surf shack corp is a retail merchandiser.

Merchandising is any practice that contributes to the sale of products to retail consumers. At the retail level, merchandising refers to the presentation of products that are sold in creative ways that induce customers to purchase more items or products.

Retail store clerks are responsible for ensuring that appropriate quantities of merchandise are available in stores and sold at appropriate prices. Clever planning, careful purchases, and smart advertising campaigns can increase your profits.

Merchandisers keep merchandise on retail shelves and present it appropriately to customers. They also track inventory levels, report problems and shortages to management, and clean up unwanted items for blatant violations of store decor.

Learn more about retail merchandiser brainly.com/question/7145120

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6 0
1 year ago
A company produces products at 2 plants each of which have a capacity of producing 75 units. 50 units of each product must be sh
zalisa [80]

Answer:

the answer is 6

Explanation:

In this case we would need to have a combination of each plant with each customer. So the variable would be in this way (3C X 2P)

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Plant1      P1C1                      P1C2                     P1C3

Plant2     P2C1                     P2C2                    P2C3

Once you have this you can calculate the best combination to minimize the cost of shipping

7 0
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