Answer:
the total cost of ordering and holding sugar is $1,000 per year
Explanation:
<em>Step 1 Calculate the Economic Order Quantity(EOQ).</em>
EOQ = √(2×Total Demand×Ordering cost)/ Holding Cost per Unit
= √(2×250×20×5)/20
= 50
<em>Step 2 Calculate the total cost of ordering and holding sugar</em>
Total cost = Ordering Cost + Holding Cost
= (250×20)/50 × $5 + 50/2 × $20
= $500+$500
= $1,000
Therefore, the total cost of ordering and holding sugar is $1,000 per year
Answer:
22.13%
Explanation:
The effective annual rate formula below can be used to determine the actual rate charged by the bank as follows:
Effective annual rate=(1+APR/n)^n-1
APR=20%
n=number of times interest is computed yearly=365
Effective annual rate=(1+20%/365)^365-1
Effective annual rate=1.221335858
-1
Effective annual rate=22.13%
The actual rate of interest on bank loan is 22.13%
Options:
A) Select distributors; don't let them select you.
B) Look for distributors capable of developing markets.
C) Give local distributors control over marketing strategy.
D) Treat local distributors as long-term partners.
E) From the start maintain control.
Answer:B) Look for distributors capable of developing markets.
Explanation: A Distributor is a person or an organization saddled with the responsibility of transferring products from one point to another. An independent Distributor is a person or an organization which is not owned by the person or Organisations that it serves.
One of the best guildlines for selecting independent distributors is to select a distributor that is capable of developing markets which may be a new market or an existing market.
Answer:
C) Operating expense of $800,000 and liability of $800,000
Explanation:
As based on accrual basis, an expense is the amount recognized and provided in the period to which it relates, if not paid then it is a liability and an expense.
Whereas a contingent liability is the one which is provided only in notes as the probability of its occurrence is estimated to be less than the probability of its non occurrence.
A contingent liability, when is sure to be incurred, and even the amount is known, then it is recorded as and when know, and not delayed.
Here, in the given instance the recall has to be made, and it is 100% sure, also the amount is know that is $800,000 and thus, it shall be provided in operating expense, and in balance sheet as a liability.
Answer:
$72,405
Explanation:
PV: Present value (The amount of deposit today)
FV: Future Value
i/r: Interest rate
PMT: The amount of money you have to deposit monthly. In this question, this amount is 0.
FV = $140,000
n = 6 years = 6x12 = 72 months
i/r = 11%/year = 0.92%/month
PMT = 0
PV = ?
By inputting all these given info into financial calculator, we have the following:
PV = $72,405
OR we can perform the calculation manually:
PV = 140,000 / (1+0.0092)^72 = $72,045
