1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Softa [21]
3 years ago
9

15 stores and their distribution warehouse. The Paint Supply Store franchise sells an average of 70 gallons of Purple Paint ever

y week (for 52 weeks per year). Their current policy is that when they place an order for Purple Paint from their supplier, they order 90 gallons at a price of $4.00 per gallon. [The company does not hold Safety Stock] It takes 2.50 weeks to receive an order from the supplier. Administrative costs for Ordering paint have been estimated to be $35 per order. Holding Costs = 40% of the purchase price per gallon per year. What is the Total Annual Inventory Cost for the company's current policy?
Business
1 answer:
erastova [34]3 years ago
4 0

Answer: $1,487.56

Explanation:

Total annual inventory cost = Ordering cost + Inventory Holding cost

Ordering cost = Number of orders * ordering cost

= (Annual demand / Order quantity) * 35

= ((52 weeks per year * 70) / 90) * 35

= $1,415.56

Inventory holding cost:

= Average inventory * holding cost

= (90 gallons / 2) * (40% * 4)

= $72

Total annual inventory cost = 1,415.56 + 36

= $1,487.56

You might be interested in
Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that w
AleksandrR [38]

Answer:

Explanation:

a. Break even in unit sales =  (Fixed expenses ) ÷ (Contribution margin per unit)

= $1,890,000 ÷ ($14,000 - $9,800)

= 450  units

b. Margin of safety = Expected sales - break even sales

= ($14,000 × 600) - ($14,000 × 450)

= $2,100,000

Contribution margin  = Sales - Variable cost

= ($14,000 × 600) - ($9,800 × 600)

= $2,520,000

Profit before earning and tax  = Contribution margin - Annual fixed cost

= $2,520,000 - $1,890,000

= $630,000

c. Degree of operating leverage = Contribution ÷  Profit before earning and tax

= $2,520,000 ÷ $630,000

= 4

d. Loss on Net operating income = (Sales) - (Variable cost) - Fixed expenses

=($11,000 × 600) - ($9,800 × 600) - $1,456,000

= -$736,000

5 0
3 years ago
Managerial accounting information is generally prepared for a. shareholders b.creditors c.managers d.regulatory agencies
amm1812

Answer:

Correct option is (c)

Explanation:

Managerial accounting reports are prepared for the internal use by managers within different departments in the organization. They may or may not be published for external users like creditors or customers.

These reports need not comply to any established authorities like GAAP or IFRS. They are used by managers for various decision making purposes, so they can be prepared as per the manager's convenience.

8 0
3 years ago
The three basic questions in Economics are all of these, except _____________________.
nata0808 [166]
The three basic questions in Economics are all of these,except When to produce
4 0
3 years ago
Read 2 more answers
Using college students as the market segment, describe the most relevant reference group(s) and indicate the probable degree of
Sergio039 [100]

Answer and Explanation:

A. Toothpaste brand: Toothpaste is a commonly used, inexpensive, and very popular product. These decisions are governed mainly by the reference group such as family , friends or primary group with whom a student has regular face to face experiences. Hence the purchase decision is affected by a low degree of comparison community.

B. Buying a hybrid car: A hybrid car is sometimes described as expensive and luxury products. It's moreover a non-necessity commodity for a college student. These decisions are therefore usually affected by secondary community. And a high degree of control in the comparison community will only inspire a student to buy a car.

C. Buying cereal for breakfast: This is a simple requirement of a lifetime. Therefore, even without consulting any reference group a student can buy such product. Often such transactions are rules by family group control. So it needs a low degree of control.

D. Becoming a vegetarian: It takes a high degree of influence and motivation to become a vegetarian.

Thus the aspirational group influences a student. So they opt for vegetarianism to become part of such a community. Such decision taking involves a high degree of control.

E. Option of a computer tablet like the iPod: these products are a luxury commodity sold at regular prices. Typically refer to their families , friends, magazines before making a purchase student to get an idea about the output and price of these products. These goods are the weak product with a strong brand and a strong purchase is controlled by a strong reference community impact.

4 0
3 years ago
Martha, the chief designer of StyleSmartz, is considered a role model by her design team members for her role as an effective le
Lerok [7]

Answer:

engage in management openness by encouraging members to voice their opinion.

Explanation:

An important characteristic of management is approachability and openness of the manager to ideas of employees. This gives the manager an idea of the actual state of the workplace facilitating effective resolution of issues as they arise.

When employees know they can freely express themselves without being reprimanded, they better express themselves about challenges encountered.

Also opportunities and methods of doing things better is communicated to the manager

8 0
3 years ago
Other questions:
  • You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in
    13·1 answer
  • In markets characterized by oligopoly,
    11·1 answer
  • When does the all-events test under the accrual method require the recognition of income from the sale of goods?A. when the titl
    13·1 answer
  • Capital structures vary among firms in the United States and around the world. Relationships, attitudes, tax codes, and accounti
    9·1 answer
  • Suppose that you buy a TIPS (inflation-indexed) bond with a 1-year maturity and a coupon of 7% paid annually. Assume you buy the
    13·1 answer
  • Where would you find the Create Table Dialog Box?
    9·1 answer
  • CORRECT ANSWERS ONLY!
    7·1 answer
  • 1. Grant A: Harmon seeks to be reimbursed by the state for costs incurred in teaching students with disabilities. To receive rei
    15·1 answer
  • In the early 2000s, easy credit made real estate the investment of choice in the United States. By the end of the decade, howeve
    8·1 answer
  • Consumer surplus will _____ when a monopolist goes from single-price monopoly to perfect price discrimination.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!