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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.

You might be interested in
Billy’s Exterminators, Inc., has sales of $592,000, costs of $284,000, depreciation expense of $36,000, interest expense of $28,
defon

Answer:

EPS = $1.9825

Explanation:

EPS (earnings per share) = Net Income / shares of common stock outstanding

Income before taxes = $592,000 - $284,000 - $36,000 - $28,000 = $244,000

Tax = $244,000 x 35% = $85,400

Net Income = $244,000 - $85,400 = $158,600

EPS = $158,600 / 80,000 = $1.9825

Hope this helps!

6 0
3 years ago
What is the first step the manager takes when a subordinate is having difficulty carrying out a delegated task?
Andrew [12]
The qualifications of the person regarding the task
7 0
3 years ago
Determinant Company is a price − taker and uses a target − pricing approach. Refer to the following information: Production volu
Drupady [299]

Answer:

$18,315,000

Explanation:

Total Income :

= 15% of Total assets

= $13,900,000 × 15%

= $2,085,000

Total Sales :

= Market price × Production volume

= $34 × 600,000

= $20,400,000

So, Target full product cost in total for the year :

=  Total Sales - Total Income

= $20,400,000 - $2,085,000

= $18,315,000

3 0
3 years ago
All of the following phrases describe a partnership except
tamaranim1 [39]
All of the following phrases describe a partnership except (<span>B) high protection for your personal assets. Being with a partnership, at least, you have this idea of shared responsibility in making decisions for the company. Always, starting with low costs will surely be experienced in partnerships. The involvement between you and your partner will be up to 20 depends on the agreement.</span>
3 0
3 years ago
A first step toward understanding organizational markets is recognizing the differences between industrial, reseller, and govern
zaharov [31]

Answer: True

Explanation:

To understand organizational markets, one must first realize that there are three main types of them: Industrial, reseller and government.

Industrial markets enable businesses to transact with each other. They trade raw materials and other goods to each other and process them to finished goods.

The reseller market does not involve any processing but rather firms buying from one and selling to another as middlemen.

The last market is the Government market. Any arm of government that purchases goods and services fall here including at local, state or federal level.

7 0
3 years ago
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