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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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Cost-volume-profit analysis requires management to classify all costs as either fixed or variable with respect to production or
Anuta_ua [19.1K]

Answer: True

Explanation:

Cost-volume-profit analysis is refered to as the predictive tool that can be used for the determination of the profit consequences of the price changes, future cost changes, price and the volume of the activity changes.

It requires the management to classify all the costs as either fixed cost or variable cost with respect to production or sales volume within the relevant range of operations.

3 0
3 years ago
Effective managers their dominant decision style to avoid making mistakes. for each example, select the decision style that most
Vaselesa [24]

Simply put, Decision making is defined as the process involved in making a decision. It involves comparing alternatives and finding a solution to a problem.

The four styles of decision making are directive, analytical, conceptual and behavioral. Each style is a different method of weighing alternatives and examining solutions.

Kyle prefers to base decisions on lots of data, both objective data from information systems and qualitative data from people - Analytical decision style

Bill prefers simple, clear-cut solutions to problems. - Directive decision style.

Josie likes to talk to people one on one to find out how the decision will affect them - Behavioural decision style.

4 0
4 years ago
A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7.5%. The bond can be called in 3 years at a call pr
AVprozaik [17]

The Yield to call is 7.30%

Par value of Bond (FV) = $1,000

Annual Coupon (A) = 8%*1,000 = $80

Years until maturity = 8

Current YTM = 7.5%

We need to calculate the Current Price of Bond (PV)

PV = 80 * (P/A, 0.075, 7) + 1000 * (P/F, 0.075, 7)

PV = $1,026.48

Call Price = $1,010

Call Period = 3 years

Yield to call = ytc

1026.48 = 80* (P/A, ytc, 3) + 1010 * (P/F, ytc, 3)

Using the <em>trail and error </em>method,

Yield to call = 7.30%

In conclusion, the Yield to call is 7.30%

Read more about Yield to call

<em>brainly.com/question/25928027</em>

5 0
3 years ago
A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace
Mekhanik [1.2K]

Answer:

a. 2560 checkout

b. 3072 checkout

c. Old system = 3.85 checkout/$

New system = 5.56 checkout/$

Explanation:

Given:

Checkout lanes = 4

a.

How many checkouts did the old system provide in a shift?

Given

Lanes = 2

Time in use = 16 hours --- Convert to seconds

Time = 16 * 3600 = 57600 seconds

Checkout = 1 per 45 seconds

Number of check outs is calculated as:

2 lanes * 57600 seconds * 1 checkout / 45 seconds

Number of checkout = 2560 checkouts

b.

How many checkouts does the new system provide?

Lanes = 4

TimeTime in use = 16 hours --- Convert to minutes

Time = 16 * 60 = 960 minutes

Number of check outs is calculated as:

4 lanes * 960 minutes * 1 checkout / 1.25 minutes

Number of checkout = 3072 checkouts

c.

Given

Electricity costs for both setups are $0.06 per checkout

Bagging (material) costs are $0.12 per checkout with the old system

Bagging (material) costs are $0.20 per checkout with the old system

Cost for the old system is calculated by:

$0.06 * 2560 + $0.12 * 2560

= $153.6 + $307.2

= $460.3

Multifactor = 2560 checkout/$460.3

Multifactor = 5.56 checkout/$

Cost for the new system is calculated by:

0.06 * $3072 + 0.20 * $3072

= $184.32 + $614.4

= $798.72

Multifactor = 3072 checkout/$798.72

Multifactor = 3.85 checkout/$

6 0
3 years ago
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•Research in order to make an informed choice. She could research types of assets, expert advice, and how the investment would be split.

6 0
3 years ago
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