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Shtirlitz [24]
2 years ago
8

The Cole Beverage Company (CBC) has a soft drink product that has a constant annual demand of 3,600 cases per year. A case of th

is soft drink product from Supplier A costs CBC $4 and carrying cost is charged at 25% of purchase cost (that is, $1 per case per year). Ordering costs are estimated to be $32 per order placed. Based on these information, the Economic Order Quantity (EOQ) for this soft drink product is a. 480 b. 240 c. 120 d. Not enough information given to answer this question
Business
1 answer:
skad [1K]2 years ago
7 0

Answer:

a. 480

Explanation:

The computation of the economic order quantity is given below:

EOQ = \sqrt{\frac{2\times annual \ demand \times ordering\ cost }{carrying \ cost}}  \\\\= \sqrt{\frac{2\times 3600\times \$32}{\$1} }

= 480 units

The carrying cost could be determined below:

= $4 × 25%

= $1

hence, the carrying cost is $1

Therefore the economic order quantity is 480

Thus, the correct option is a.

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Mufala, Inc., will issue $10,000,000 of 6% 10-year bonds. The market rate for bonds with similar risk and maturity is 8%. Intere
zubka84 [21]

Answer:

the issue price of the bond is $8,640,999

Explanation:

The computation of the issue price of the bond is shown below:

Particulars                       Amount       PV factor   Present value  

Semi-annual Interest     $300,000     13.59033  $4,077,099  

Principal                         $10,000,000  0.45639  $4,563,900  

Issue price of the bonds                                        $8,640,999

Therefore the issue price of the bond is $8,640,999

4 0
3 years ago
Allison engines corporation has established a target capital structure of 40 percent debt and 60 percent common equity. the firm
mariarad [96]

Answer: $100,000

Explanation: Allison engines corporation has a profit of $150,000 after Tax.

Rate of retained earning : 40%

Retained earnings : $150,000 × 40% = $60,000

Percentage of equity in the capital is 60%

Break even point of retained earnings = Retained Earnings ÷ Percentage of equity in the capital

Break even point of retained earnings = $60,000 ÷ 0.6

Break even point of retained earnings = $100,000

6 0
3 years ago
Although GDP is a reasonably good measure of a nation's output. It does not necessarily include all transactions and production
Scorpion4ik [409]

Answer:

Options (a), (b) and (d) are correct.

Explanation:

Gross domestic product refers to the total value of production of goods and services during a period of time within the boundaries of the nation. GDP of a nation also represents the standard of living of that nation. If the GDP of a nation increases then it is assumed that the standard of living of that nation also increases.

But there are some flaws or loopholes in this assumption as non-marketing activities and the underground economy makes the GDP an imperfect measure of a particular economic activity.

Is doesn't includes the quality of goods received by the consumers as it doesn't contribute towards GDP of a nation.

It doesn't takes into account the non-market activities such as self service and house work. If a person is cleaning his home then this doesn't contribute towards GDP but if he hires someone to do the same job then then this will contribute towards the calculation of GDP as it is counted as a consumption expenditure.

Loss of enjoyment will also not counted while determining the GDP.

Government pay checks to soldiers will be included in the GDP because it increases the GDP of a nation.

8 0
3 years ago
Maren received 10 NQOs (each option gives her the right to purchase 8 shares of stock for $8 per share) at the time she started
bonufazy [111]

Answer:

Option (b) is correct.

Explanation:

Sale of share = NQOs received × No. of shares × Selling price per share

                      = 10 × 8 × $22

                      = $1,760

Gain realised:

= Sale of share - Basis

= $1,760 - [NQOs received × No. of shares × Selling price per share at $15]

= $1,760 - [10 × 8 × $15]

= $1,760 - $1,200

= $560

Tax paid = Gain realised × preferential rate

               = $560 × 15%

               = $84

6 0
3 years ago
Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for hi
Katena32 [7]

Answer:

The important thing to remember here is that the interest is compounded semi annually, which means twice a year. When the 1st interest is compounded, the second interest is calculated on that new amount.

(11,500 + (11,500×6%)) = $ 12,190

(12,190 + (12190×6%)) = $ 12921.40

Explanation:

4 0
3 years ago
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