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Lunna [17]
3 years ago
10

GROCERY STORE PROBLEM: A local grocery store faces demand for one of its items at a constant rate of 20,000 boxes per year. It c

osts them $5 to process an order and $0.50 per box per year to carry the item in stock. The stock is received three working days after an order is placed. Assume 250 working days in a year and no backordering. What is the demand during lead time assuming that there is no variability
Business
1 answer:
harkovskaia [24]3 years ago
3 0

Answer: 240

Explanation:

The following information can be gotten from the question:

Annual demand (D)= 20000

Daily demand (d) = 20000 / 250 = 80

Ordering cost (S) = 5

Holding cost (H) = 0.5

Lead time (L)= 3 days

The demand during lead time would be gotten by multiplying the daily demand by the lead time. This would be:

= 3 × 80

= 240

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Answer:$856,838.40

Explanation:

The sales revenue will should be the present value of paying $160,000 annually for 7 years. This is an Annuity but one that is paid at the beginning of a period making it an Annuity due.

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Present Value of Annuity Due = Payment * (Present value of Annuity Interest factor, 10%, 7) * ( 1 + 10%)

= 160,000 * 4.8684 * 1.1

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7 0
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1,2,4

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8 0
2 years ago
Read 2 more answers
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leva [86]

Answer:

Maket value of the comapny                                $

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Market value of preferred stocks (2,600 x $61) 158,600

Market value of common stocks (37,500 x $19) 712,500

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Weight to assign to common stocks = $712,500/$1,241,220 x 100

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The market value of each stock is the number of stocks issued multiplied by current market price. Market value of the company is the aggregate of market value of bond, market value of preferred stocks and market value of common stocks. The weight to be assigned to common stocks is the percentage of market value of common stocks to market value of the company.

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Answer:

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