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kherson [118]
3 years ago
14

An appliance repair shop buys and uses about 4,212 fan motors annually. Holding cost is 27 dollars per motor per year, and order

ing cost is 177 dollars per order. Determine the economic order quantity. Round your number to ZERO decimal point.
Business
1 answer:
Juli2301 [7.4K]3 years ago
4 0

Answer:

15,251 units

Explanation:

The formula for Economic order quantity is;

EOQ = √2DS/H

Where,

D = Annual demand = 4,212

S = Ordering cost = $177

H = Holding cost = $27/4,212 = $0.00064102564

EOQ = √ 2 × 4,212 × $177 / $0.00064102564

EOQ = √ $1,491,048 / $0.00064102564

EOQ = √232603488.37

EOQ = 15,251 units

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Product X used the following quantity of activity drivers to produce 100 units of final product: 25 setups, 40 material moves an
n200080 [17]

Answer:

$137.50 per unit

Explanation:

The computation of the total indirect manufacturing cost per unit is shown below:

Machine setups  15000 ÷ 100 × 25 = $3750

Material moves   22500 ÷ 225 × 40 = $4000

M/c. Operations 14000 ÷ 175 × 75 = $6000

Total Cost for 100 units                     $13,750

And since there is 100 units

So, the total indirect manufcturing cost per unit is

= $13,750 ÷100 units

= $137.50

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A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years. What is the amount
Alla [95]

Answer:

$18,750

Explanation:

The double declining method of depreciation (DDB) formula is:

DDB= 2 * Cost of the asset * Depreciation rate (DR)

DR= (1/useful life)*100

For this problem:

Value to depreciate: $75,000

DR= (1/4)*100= 25%

DEPRECIATION YEAR 1: DDB= 2 * $75,000*25%= $37,500

Machine´s value year 1: $75,000-$37,500= $37,500

DEPRECIATION YEAR 2: DDB= 2*37,500*25%= $18,750

4 0
3 years ago
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually.
aleksley [76]

Answer:

a) Future Value = $530

b) Future Value = $561.8

c) Present Value =$566.037

d) Present Value =$533.99

Explanation:

FV = PV × (1+r)^n

FV -future Value , r- interest rate,n- number of years , PV-present Value

FV = 500 ×(1.06)^1 =

Future Value = $530

b

FV = 500 × 1.06^2 =

Future Value = $561.8

c) Present Value

PV = FV × (1+r)^(-n)

PV =  600 ×1.06^(-1)=566.037

Present Value =$566.037

d)

PV = FV × (1+r)^(-n)

FV -future Value , r- interest rate,n- number of years , PV-present Value

PV =  600 ×1.06^(-2) = 533.99

Present Value =$533.99

a) Future Value = $530

b) Future Value = $561.8

c) Present Value =$566.037

d) Present Value =$533.99

3 0
3 years ago
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