Answer:
B) 708
Explanation:
The computation of the economic order quantity is shown below:
Data given in the question
Annual demand = 50,000 units
Ordering cost per order = $25
Holding cost per unit = $5
= 708 units
We apply the above formula to compute the economic order quantity so that the approximate value could come by considering the all items given in the question
Answer:
The price of alternatives or substitutes
Reason: When there are alternatives or substitutes, this means that the consumer can then get better options.
Answer:
Annual average inventory in days (no of times) = 1.5 times
Explanation:
<em>Annual inventory turn over is the average length of time it takes for inventor to be sold and replaced.</em>
<em>Average inventory turnover = average inventory/ cost of sold × 365</em>
<em>Average inventory turnover (in No of times) = C</em>ost of sold sold /average inventory
Cost of goods sold
= (1000/2000) × 60 million
= $30 million
Closing Inventory = $20 million
Annual average inventory
= $20/ 30 × 365 days
= 243.days
Annual average inventory
= cost of sold sold /average inventory
=30/20
= 1.5 times
Annual average inventory in days = 243.days
Annual average inventory in days (no of times) = 1.5 times
Answer: See attachment
Explanation:
Note:
April 17:
Account payable- Lyon Company:
= $5000 - $750
= $4250
Merchandise inventory:
= $4250 × 2%
= $4250 × 0.02
= $85
Cash = $4250 - $85
= $4165
April 28:
Account payable- Frist Corp:
= $9300 - $500
= $8800
Merchandise inventory:
= $8800 × 1%
= $8800 × 0.01
= $88
Cash = $8800 - $88
= $8712
Check the attachment for further information
I believe in father christmas
