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
lora16 [44]
2 years ago
10

Stephanie Robbins is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this pro

duct is​ 5,000 units; carrying cost is​ $50 per unit per​ year; order costs for her company typically run nearly​ $30 per​ order; and lead time averages 10 days.​ (Assume 250 working days per​ year.) ​a) The economic order quantity is ​b) The average inventory is ​c) The optimal number of orders per year is ​d) The optimal number of working days between orders is ​e) The total annual inventory cost​ (carrying costordering ​cost) is ​ ​f) The reorder point is
Business
1 answer:
alexgriva [62]2 years ago
3 0

Solution :

Given :

The annual demand, $D=5000$ units

Ordering cost, $S=\$30$

Carrying cost, $H=\$50$

Lead time, L = 10 days

Number of days per year = 250 days

So, average demand is d = $\frac{D}{250}$ days

                                         = $\frac{5000}{250}$  = 20 units

a). The economic order quantity, Q = $\sqrt{\frac{2DS}{H}}$

                                                               $=\sqrt{\frac{2\times 5000 \times 30}{50}}$

                                                               = 77 units

b). Average inventory = $\frac{Q}{2}$

                                    $=\frac{77}{2}$

                                    ≈ 39 units

c). Number of orders per year = $\frac{D}{Q}$

                                                  $=\frac{5000}{77}$

                                                  = 65 units

d). Time between orders = $\frac{Q}{D}$  x number of days per year

                                         $=\frac{77}{5000} \times250$

                                        = 3.85

e). Annual ordering cost = $\frac{D}{Q} \times S$

                                        $=\frac{5000}{77} \times 30$

                                        = $ 1948.05

    Annual carrying cost = $\frac{Q}{2} \times H$

                                        $=\frac{77}{2} \times 50$

                                          = $ 1925

    Total annual cost of inventory = $ 1948.05 + $ 1925

                                                       = $ 3873.05

f). Reorder point = $d \times L$

                           $=20 \times 10$

                           $=200$ units

You might be interested in
Malone Co. owned 70% of Bernard Corp.'s common stock. During November 2021, Bernard sold merchandise to Malone for $150,000. At
elena-14-01-66 [18.8K]

Answer:

$18,000

Explanation:

Calculation to determine what The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:.

Using this formula

Intra-Entity Gross Profit =(Transfer Price × Percentage of Bernard's GP) × Intra-Entity Transfers Remaining in Ending Inventory

Let plug in the formula

Intra-Entity Gross Profit=($150,000×30% )×40%

Intra-Entity Gross Profit=$45,000×40%

Intra-Entity Gross Profit=$18,000

Therefore The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:$18,000

6 0
3 years ago
JacksonJackson Bank lends JabbourJabbour Clothing Company ​$125 comma 000125,000 on September 1. JabbourJabbour signs a ​$125 co
lara31 [8.8K]

Answer:

Explanation:

The journal entry is shown below:

Interest expense A/c Dr $3,000

           To Interest payable A/c $3,000

(Being interest is recorded)

The computation of the interest expense is shown below:

= Principal × rate of interest × number of months ÷ total number of months in a year

= $125,000 × 6% × (4 months ÷ 12 months)

= $2,500

The four-month is calculated from the September 1 to December 31

4 0
3 years ago
Elliston company accepted credit card payments for $10,000 of services provided to customers. the credit card company charges a
Nastasia [14]

To solve this question, take 3% of $10,000 to see what the increase would be:

$10,000 x 3% = $300

There is an increase of $300 due to the 3% credit card processing fee that the credit card company is imposing on Elliston.

8 0
3 years ago
What is an argument in favor of a $15 minimum wage
tamaranim1 [39]

The idea for a $15/hour minimum wage is to provide a <u>living wage</u> for employees, meaning that they can meet their basic housing, food, medical, and living expenses when working full time at minimum wage.

7 0
3 years ago
The term inflation is used to describe a situation in which
photoshop1234 [79]

Answer:

The correct answer is option b.

Explanation:

Inflation refers to the continuous and sustained growth in the general price level. As the price level rises, it reduces the purchasing power or value of cash balances held by the consumers to reduce. This causes real income to decline.  

A certain level of inflation is desirable in an economy to promote growth but a high rate of inflation is harmful. Inflation can be of several types such as  

  • Demand-pull inflation
  • Cost-push inflation

There are several measures used to calculate inflation, for instance, the consumer price index. To correct inflationary pressures, a government uses contractionary fiscal and monetary policy.

6 0
3 years ago
Other questions:
  • A company's business model:______a. is management's blueprint for how it will generate revenues sufficient to cover costs and yi
    5·1 answer
  • Consider the following note payable transactions of Cabal Video Productions.
    7·1 answer
  • Auditors must gather evidence, and obtain documentation around identified risks. A risk in the purchasing process is that a purc
    12·1 answer
  • The objective of the EOQ with quantity discounts model is to ______(A) minimize the sum of annual carrying, holding, and purchas
    13·1 answer
  • What the best way to remember to do homework?
    7·2 answers
  • a celebrity appearing in a commercial for a soft drink while wearing a certain brand of clothing and holding a certain brand of
    5·2 answers
  • In which of the following situations should you expect to provide your Social Security number? A. Signing up for an after-school
    6·2 answers
  • Project A requires a $415,000 initial investment for new machinery with a five-year life and a salvage value of $37,000. The com
    10·1 answer
  • PLZ HELP I AM TIMED!!!!!!
    6·2 answers
  • If you are an engineer working for a state highway department with the responsibility for overseeing and regulating construction
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!