Answer:
I have attached the excel file which shows the entire calculation of all the parts of your question. Majority of the numbers are linked so that its easy for you to understand. Key points before you look into file.
1) Number of units have derived by dividing revenue over sales price per unit which is $5
2) Production units are calculated by dividing total sales unit by 12 (as mentioned in the question)
3)Keep in mind that 80% of revenue will be received next month of the sales therefore also include in January sales receipt the 80% revenue of previous month
Explanation:
Answer:
34
Explanation:
Annual demand D = 4,200 bags
Ordering cost S = $10.70
Holding cost H = $76
Economic order quantity = 
Economic order quantity = 
Economic order quantity = 
Economic order quantity = 
Economic order quantity = 34.389388
Economic order quantity = 34
D. Managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions.
The leasehold building improvement should be amortized over the lesser of the remaining life of the lease, which is 6 years, the life of the said improvement is 8 years. To get the amortization for a year, the calculation should be:
$48,000 / 6 = $8,000 (amortization for a year),
$8,000 / 12 * 6months( jan -june ) = $4,000
So with that, the amount of leasehold improvement would be like this:
$48,000 - $4,000 = $44, 000
