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Elis [28]
2 years ago
8

A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $13, plus a fixed charge of $96

per order. If it costs $12 to store a bottle for a year, how many bottles should be ordered at a time and how many orders should the warehouse place in a year to minimize inventory costs
Business
1 answer:
Lyrx [107]2 years ago
7 0

Answer:

400 bottles should be ordered at a time

25 orders should the warehouse place in a year to minimize inventory cost

Explanation:

With regards to the above , we will calculate the economic order quantity

Given that;

Annual demand = 10,000

Cost per order = $96

Holding cost per unit = $12

EOQ = √ 2 × Annual demand × Cost per order / Holding cost per unit

EOQ = √ 2 × 10,000 × $96 / $12

EOQ = 400 bottles

Number of order = Total demand / Economic order quantity

= 10,000 / 400

= 25 orders.

Therefore,

400 bottles should be ordered at a time

25 orders should the warehouse place in a year to minimize inventory cost

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At McDonald's, you can get several items together as a meal, for less than purchasing those items separately. This is an example
shtirl [24]

Value- Pricing

  • Value pricing is the strategies whose prices are fixed primarily according to the customers needs.
  • Affordable price attracts more and more customers to come or buy.
  • Prices mainly are fixed according to their customers feedback and their needs.
  • It is also known as customers willingness to pay for the particular product.
  • Two main types of value pricing are:
  1. Value added pricing
  2. Good value pricing
  • Disadvantages
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5 0
2 years ago
Reddick Enterprises' stock currently sells for $35.50 per share. The dividend is projected to increase at a constant rate of 5.5
Shalnov [3]

Answer:

E. $41.69

Explanation:

We know,

Value of stock (P_{0}) = \frac{D_{1}}{k_{s} - g} [In case of constant growth model]

D_{1} = Next year or expected dividend

k_{s} = required rate of return

g = growth rate = 5.50%

However, as there is no information regarding expected dividend, we will use the alternative formula to calculate the stock's expected price 3 years from today.

P_{3} = P_{0} × (1 + g)^{3}

Here, current stock price, P_{0} = $35.50

Therefore, P_{3} = $35.50 × (1 + 0.0550)^{3}

P_{3} = $35.50 × 1.1742

Stock's expected price 3 years from now = $41.69 (rounded to two decimal places)

Therefore, option E is the answer.

4 0
3 years ago
Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 11,833 shares authorized, 7,100 shares
pickupchik [31]

Answer:

a) 548,000 shares

b) The stated value = $3 per common stock.

c) The par value of the preferred stock = $100

d) The dividend rate of preferred stock = 7%

e) Reported for retained earnings = $1,079,600

Explanation:

A. Number of outstanding common stock = Number of Common stock - Treasury stock

Given,

Number of Common stock issued = 555,000 shares

Treasury stock = 7,000 common shares

Treasury stock is the purchasing of the company's own stock from the market.

Therefore, Number of outstanding common stock = (555,000 - 7,000) shares

Number of outstanding common stock = 548,000 shares.

B.

The stock of the firm has no par value. It means the full amount is either in the premium or in stated value. Therefore, the firm's declared value of the common stock is the total common stockholders' equity divided by the total number of common stock issued.

Hence, the formula is,

The stated value = \frac{total common stockholders' equity}{total number of issued common stock}

The stated value = \frac{1,665,000}{555,000}

The stated value = $3 per common stock.

C.

We know,

The par value of the preferred stock = \frac{Total preferred stock amount}{Number of preferred stock}

Given,

Total preferred stockholders' equity = $710,000

Number of preferred stock = 7,100 shares

Putting the value in the formula,

The par value of the preferred stock = \frac{710,000}{7,100}

The par value of the preferred stock = $100

It is the selling price to the preferred stockholders for every preferred stock.

D.

Given,

The annual dividend = $49,700

Total preferred stockholders' equity = $710,000

We know, the dividend rate of preferred stock = \frac{Annual Dividend paid to the preferred stockholders}{Total preferred stockholders' equity} x 100

Therefore,

The dividend rate of preferred stock = \frac{49,700}{710,000} x 100

The dividend rate of preferred stock = 7%

This is a fixed rate and for this firm, it is cumulative. Therefore, the firm's preferred stockholders' will receive 7% dividend per year.

E.

Since the preferred stock of this firm is cumulative, therefore, the dividend has to be paid to the preferred stockholders if there are any outstanding amount remains in the previous year. Therefore, if there were $71,400 arrears of dividends, the firm would give those amounts from the retained earnings' balance.

Given,

Retained earnings                 = $1,151,000

Arrear preferred dividend     = $  (71,400)

The balance would be reported for retained earnings = $1,079,600

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3 years ago
In order for earnings from a second or part-time job to be considered as part of a lender’s income evaluation, what must be true
SVETLANKA909090 [29]

In order for earnings from a second or part-time job to be considered as part of a lender’s income evaluation, the applicant must have been employed for at least two years, and the employment must be expected to continue.

The basis for one's pleasure or dissatisfaction with their financial condition can be defined as income evaluation. Additionally, it might engender a sense of fairness or unfairness in how income is distributed, which might bring about societal change or stabilize the situation.

Investors can determine a property's market worth based on the income it is currently producing by using the income approach to appraisal. Investors can assess if a deal fits their aims and requirements by understanding the cash flow property can produce.

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8 0
1 year ago
When prioritizing goals, how should you order them?
irina [24]
Definitely by order of importance
5 0
3 years ago
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