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Alja [10]
3 years ago
8

A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is:

three times as large. one-third as large. nine times as large. one-ninth as large. cannot be determined
Business
1 answer:
ruslelena [56]3 years ago
4 0

Answer: three times as large

Explanation:

Economic order quantity will be calculated as follows:

EOQ = ✓(2DS/H)

D = Demand in units

Here S = Ordering cost = $10

H = Holding cost

Since S = $10

Therefore, EOQ will be:

= ✓(2DS/H)

= ✓(2 × 10 × D/ H)

= ✓(20D/H)

Since we're to increase the order cost from $10 per order to $90 per order, then EOQ will be:

Since S = $90

Therefore, EOQ will be:

= ✓(2DS/H)

= ✓(2 × 90 × D/ H)

= ✓(180D/H)

3✓20DH

The revised EOQ will then be 3 times as large.

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The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment
slega [8]

Answer:

   Recycling Inductries

1.  Condensed Divisional Income Statement for the year ended Dec 31 20Y8

                                                    Business Division                Consumer Division

                                                                 $                                         $

sales                                                  42,800,000                      56,000,000

Cost of Goods Sold                        <u> (23,500,000)  </u>                  <u> (30,500,000)</u>

Gross Profit                                       19,300,000                        25,500,000

Operating expenses                        <u> (11,424,800)</u>                      <u> (14,300,000)</u>

Net Income                                     <u>     7,875,200</u>                        <u>  11,200,000</u>

2. Using Duo point Analysis

Profit Margin =    Net Income / sales

                                                        <u>7,875,000 * 100%</u>          <u>11,200,000 * 100%</u>

                                                          42,800,000                       56,000,000  

                                                =            18.4%                               20.0%

Investment Turnover   =   Sales / Invested asset  

                                                    <u>42,800,000  </u>                        <u>56,000,000</u>

                                                     34,240,000                          70,000,000

                                               =     1.25                                       0.8

Return on Investment  using Duo-point =  Profit margin* Investment turnover

                   Business dividion =  18.4% *1.25 = 23%

                    Consumer division  =  20% * 0.8 =  16%

3. Residual Income

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Net income                             $7,875,200              $11,200,000

Imputed cost*                         <u> (3,424,000) </u>         <u> (7,000,000)</u>

Residual Income                     <u> 4,451,200   </u>           <u> 4,200,000</u>

 

4. Evaluation of performance of eaxh division

In term of profit, consumer division perform better than business division but in term of return on investment, business dividion has better performance. in term of residual income, business dividion is better in tem of performance than the consumer division.

Explanation:

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2 years ago
How many loads of laundry will each shift pay for if the cost per load rises to 16 quarters? express your answer numerically as
vampirchik [111]

If the price was to rise to $16 quarters then the loads of laundry that each shift would pay for is 112 loads

<h3>How many loads would each shift pay for?</h3>

The amount earned for shift of 75 minutes is:

= 12 x 1.5 hours

= $18

If the cost per load rises to 16 quarters, the number of loads you can afford is:

= Amount earned / cost per load

= 18 / 0.16

= 112 loads

Rest of the question is:

You wash dishes for a chemistry laboratory to make extra money for laundry. You earn 12 dollars/hour, and each shift lasts 75 minutes. Your laundry requires 12 quarters/load.

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Answer:

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Explanation:

Data provided in the question :

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Discount rate, r = 8%

Now,

the present values is given as:

\textup{Present value}=\frac{\textup{Principle amount}}{(1+r)^n}

on substituting the respective values, we get

\textup{Present value}=\frac{\textup{$1,400,000}}{(1+0.08)^70}

or

Present value = $6404.20

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Answer:

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Explanation:

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