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zvonat [6]
2 years ago
9

Cooper Company has an average demand of 50 units per day. Lead time from the supplier averages 20 days. The combined standard de

viation of demand during lead time is 20 units. The item costs $75 and the inventory carrying cost is 24%. Answers to the next two questions are based on this information. How much is the annual inventory carrying cost of the safety stock because of this decision
Business
1 answer:
Mashutka [201]2 years ago
5 0

Answer:

The annual inventory carrying cost of the safety stock = $594

Explanation:

Given that:

The average daily demand (d) = 50 units / day

The lead time (LT) = 20 days

The combined standard deviation of demand lead time = 20 units.

The item cost  = $75

The inventory carrying cost = 24% of the item cost

i.e. (24/100) × 75 = $18 of the item cost

Let assume that the management of the company wants to offer a service level of 95%.

Then the z-value that relates to 95% confidence interval level = 1.65

So; the safety stock relating to the 95% service level = z \times \sigma_{dlT}

= 1.65 × 20

= 33 units

Now:

The annual inventory carrying cost of the safety stock = Safety stock × Inventory carrying cost.

= 33 × $18

= $594

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Blue Sky Company’s 12/31 balance sheet reports assets of $65,893 and liabilities of $28,686. All of Blue Sky’s assets’ book valu
padilas [110]

Answer:

Goodwill is $ 50,166.00  

Explanation:

Goodwill is the excess of purchase price consideration over the fair value of net assets of the business acquired.

Purchase price consideration is the proceeds received by the owners of the business acquired in a business combination arrangement like this.

The net assets is the fair value of assets minus the fair value of the liabilities.

Purchase price consideration is $97,109

Net assets =$65,893+$9,736-$28,686=$ 46,943.00  

Goodwill=$97,109-$46,943.00  =$ 50,166.00  

3 0
3 years ago
Sweet Dreams sells 15,000 pillows per year for $25 per unit. Variable cost per unit is $14. Sweet Dreams wants to improve custom
Radda [10]

Answer:  The answer is $27.25

Explanation:

Let x be the price Sweet dreams will charge to earn the profit of $75,000

New sales units = 20,000

New variable cost = $19

We know, Sales - Variable cost - Fixed cost = Profit

Now applying the equation,

 20,000x - (20,000*19) - 90,000 = $75000

 20,000x = $75,000 + 380,000 + 90,000

therefore, x = $27.25

So, Sweet Dreams will charge $27.25 to earn the same profit it is earning now i.e. $75000 per year.

4 0
3 years ago
You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employee
Dmitrij [34]

Answer:

This presentation helps you choose which of the five health insurance options works best for your family.

Explanation:

In this instance the most appropriate statement will be one that helps the employee choose the best plan for themselves.

A statement with the you voice and language that is simple to understand will be best.

The statement - This presentation helps you choose which of the five health insurance options works best for your family. Best embodies these traits that will attract employees to the fair

8 0
3 years ago
Suppose the European Central Bank (ECB) decides to use monetary policy to offset the possible inflationary effects of European e
Grace [21]

Answer:

the European Central Bank (ECB) should engage in a contractionary monetary policy

Explanation:

A contractionary monetary policy takes place when a central bank (or the Fed) reduces the money supply in order to cool down the economy, lower inflation rate or like in this case, wants to offset expansionary fiscal policy.

The central bank initially raises the interest rates and starts selling more securities in order to absorb cash from the markets.

7 0
3 years ago
Sarjit Systems sold software to a customer for $176,000. As part of the contract, Sarjit promises to provide "free" technical su
My name is Ann [436]

Answer:

DR Cash ..............................................................$ 176,000

CR Sales Revenue................................................................$149,600

CR Deferred Revenue..........................................................$26,400

Explanation:

Revenue should only be recorded when earned and as the 6 month technical support can be sold separately, it is revenue that has not be earned yet as the 6 months have not elapsed. This will therefore need to be recorded as Deferred revenue.

Sold alone, the revenue is more than when they are sold together so use the standalone price to find out the revenue when sold together by proportionality.

Sales revenue = 153,000/180,000 * 176,000

= $149,600

Deferred Revenue = 27,000/180,000 * 176,000

= $26,400

7 0
3 years ago
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