Answer:
$444.42
Explanation:
For computing the saving amount, first need to calculate the economic order quantity, total cost etc
The economic order quantity is

where,
Annual demand is
= 774 packaging crates × 12 months
= 9,932 crates
And, the carrying cost is
= $12 × 34%
= $4.08

= 363.37 crates
Now the total cost is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 363 × $29 + 363 ÷ 2 × $4.08
= $742.02 + $740.52
= $1,482.54
Now the total cost in case of 774 packing crates is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 774 × $29 + 774 ÷ 2 × $4.08
= $348 + $1,578.96
= $1,926.96
So, the annual saving cost is
= $1,926.96 - $1,482.54
= $444.42
Answer:
option (D) $ 2,750
Explanation:
Data provided :
Assessed value of John and Mary Billings = $ 110,000
Tax rate = 25 mills per $ 1.00
or
Tax rate in dollars = 25/1000 = 0.025 / $ 1.00
therefore,
Tax they have to pay = Assessed value of John and Mary Billings × Tax rate
or
Tax to be paid = $ 110,000 × 0.025 = $ 2,750
Hence,
the correct answer is option (D) $ 2,750
True. Creating central distribution centers can allow a business to run more efficiently. This statement is true because when there is a central distribution center, it allows one central location for products to filter in and out. This products are able to be better counted for inventory purposes and making sure there is enough supply being producted to meet the demand for the items.