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ICE Princess25 [194]
3 years ago
10

Ping-Aye Tropical Fruits Company must choose between two transportation options: a contractual arrangement with a local carrier

that costs $4,500 upfront plus $250 for each shipment, or leasing its own refrigerated trucks which will cost $20,000 plus $45 for each shipment. What is the indifference point
Business
1 answer:
Triss [41]3 years ago
4 0

Answer:

The indifference point is 68 shipments.

Explanation:

<u>First, we need to establish the total cost formula:</u>

<u></u>

Local carrier:

Total cost= 4,500 + 250*x

Leasing:

Total cost= 20,000 + 20*x

x= number of shipments

<u>Now, we equal both formulas and isolate x:</u>

4,500 + 250x = 20,000 + 20x

230x = 15,500

x= 67.39 = 68

The indifference point is 68 shipments.

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A supermarket expects to sell 1000 boxes of sugar in a year. Each box costs $2, and there is a fixed delivery charge of $20 per
Strike441 [17]

Answer:

Order size = 200 units

Number of order  = 5 times

Explanation:

<em>The number of order per year  will be equal to the Annual demand divided by the EOQ.</em>

<em>No of orders = Annual Demand / EOQ</em>

Economic order quantity (EOQ)

The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.

It is computed using he formulae below

EOQ = √(2× Co× D)/Ch

Ch- Carrying cost per unit per annum-  $1

Co- Ordering cost per order -20

EOQ =√(2× 20× 1000)/1

        = 200 units

Order size = 200 units

Number of order = 1000/200 = 5 times

4 0
4 years ago
Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventor
Svet_ta [14]

Answer:

37,000 units

Explanation:

The computation of the total equivalent units for direct material is shown below:

= Transferred to finished goods during the month of July + Ending work in process during the month of July - Inventory in process, July 1

= 37,500 units + 3,500 units - 4,000 units

= 41,000 units - 4,000 units

= 37,000 units

We simply applied the above formula so that the total equivalent units for direct materials could come

7 0
4 years ago
Jerry needs some quick cash and decides to pawn his diamond ring, which is appraised at $750. The pawnbroker agrees to give Jerr
GarryVolchara [31]

Answer:

the amount of the loan the pawnbroker made to Jerry is $112.50

Explanation:

In order to find 15% of $750, one method is dividing 750 into 100 to find the value of 1%.

750 ÷ 100 = 7.5

Now we know the value of 1% is $7.50, so all we have to do is multiply that by 15.

7.5 × 15 = 112.5

Therefore, the amount of the loan the pawnbroker made to Jerry is $112.50

5 0
3 years ago
Read 2 more answers
Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a(n) ______ strategy.
IRINA_888 [86]

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.

<h3>What is multinational enterprise?</h3>

Multinational enterprise are International organization or cooperation with two or more countries in the chain of operation.

They also involve in production of goods and services.

Therefore, Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.

Learn more on cooperation here

brainly.com/question/1669538

7 0
2 years ago
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.10; direct
Ghella [55]

Answer:

$0 cost or savings per unit

Explanation:

Cost to Buy

Purchase Price       $31.40

and,

Costs to Make

Direct materials        $9.10

Direct labor              $13.10

Variable overhead   $2.10

Fixed Overheads     $7.10

Total                        $31.40

therefore

The net incremental cost or savings of buying the component is $0 cost or savings per unit

5 0
3 years ago
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