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
34kurt
3 years ago
13

A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a

shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag.
Required:
a. Determine the economic order quantity. (Round your final answer to the nearest whole number.) Economic order quantity bags
b. What is the average number of bags on hand? (Round your final answer to the nearest whole number.) Average number of bags
c. How many orders per year will there be? (Round your final answer to the nearest whole number.) Number of orders per year
d. Compute the total cost of ordering and carrying flour.
Business
1 answer:
Nostrana [21]3 years ago
3 0

Answer and Explanation:

The computation is shown below

a. The economic order quantity is

= sqrt ((2 × annual demand × ordering cost) ÷ carrying cost)

= sqrt ((2 × 1,215 × $10) ÷ $75)

=  18 units

b) Average number of bags on hand is

= EOQ ÷ 2

= 18 ÷ 2

= 9

c) Orders per year is

= D ÷ EOQ

= 1215 ÷ 18

= 67.5

= 68

d) Total cost = Total carrying cost+ Total ordering cost

= (Q ÷ 2)H +(D ÷ Q)S

= (18 ÷ 2)75 + (1215 ÷ 18) × 10

= 675 + 675

= $1350

You might be interested in
In the global business environment, small businesses are becoming more entrepreneurial while larger organizations are "shying" a
anzhelika [568]

Answer:

a. True

Explanation:

Since small business has lesser processes and paper work as compare to the larger organizations where formal procedures are in placed

7 0
3 years ago
Which of the following, identified in an analysis of the general environment, is an opportunity for an entrepreneur who wishes t
kvasek [131]

Answer:

a. The average age of the population in his community is high.

Explanation:

As the average age of the population in his community is high, it is an opportunity for an entrepreneur who wishes to open a business providing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training) in a city of 100,000 people because people will be more interested in the physical conditioning services and they will be attracted towards it as when the age rises, people become more interested in the health related activities, therefore, chances are very high that this will pose a serious and profitable opportunity for the entrepreneur in that particular city. He or she can definitely capture this opportunity very handsomely and profitably.

5 0
3 years ago
The Tony Hawk Skate Park has a 5 year instalment loan with monthly payments of $5.000 including interest Currently the first twe
Irina18 [472]
How is your break going ?
4 0
3 years ago
Sonoma county passed a law making it legal to drive 65 mph on freeways inside the county. A state law limited all vehicles in th
Julli [10]

Answer:

70mph

Explanation:

5 0
3 years ago
What type of companies engage in marketing?
Wewaii [24]

Answer:

American Heart Association (AHA), Walmart, Procter & Gamble.

Explanation:

4 0
3 years ago
Other questions:
  • Coronado uses the periodic inventory system. For the current month, the beginning inventory consisted of 7100 units that cost $1
    12·1 answer
  • There are two general types of franchises: product-distribution and __________ franchises.
    7·1 answer
  • A lawn service company has the following production possibilities. With​ one, two,​ three, and four​ workers, the company can mo
    5·1 answer
  • All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a join
    9·1 answer
  • Merchandise accounts and computations LO C2 Kleiner Merchandising Company Accumulated depreciation $ 700 11,000 6,600 2,050 13,5
    12·1 answer
  • Business ethics: Results in a set of correct decisions made by a company Refers to a standard of business conduct Can improve bu
    11·1 answer
  • Vegas Company is considering eliminating an unprofitable segment. The segment’s fixed costs are avoidable and are less than its
    8·2 answers
  • Discord? anyone? 0_0'
    7·2 answers
  • Harry is a citizen and resident of Saudi Arabia. During the current year, Harry never visits the United States, nor does he hold
    5·1 answer
  • Which strategic is phase consists of a concise statement that captures what the planning team believes should be the role of is
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!