Answer:
a) safety stock = z-score x √lead time x standard deviation of demand
z-score for 99.9% = 3.29053
√lead time = √7 = 2.6458
standard deviation of demand = 3
safety stock = 3.29053 x 2.6458 x 3 = 26.12 ≈ 26 soaps
reorder point = lead time demand + safety stock = (7 x 16) + 26 = 138 soaps
EOQ = √[(2 x S x D) / H]
S = order cost = $10
D = annual demand = 16 x 365 = 5,840
H = $0.05
EOQ = √[(2 x $10 x 5,840) / $0.05] = 1,528.40 ≈ 1,528 soaps
b) total order costs per year = (5,840 / 1,528) x $10 = $38.22
total holding costs = (1,528 / 2) x $0.05 = $38.20
total annual ordering and holding costs = $76.42
Answer:
The annual amount of depreciation expense for each of the remaining years would be:
$6240
Explanation:
Equipment 82000
Life 5 years
Salvage 4000
Year Cost Annual Dep Book value
Year 1__________________ 78000 15600 62400
Year 2__________________ 62400 15600 46800
Year 3__________________ 46800 15600 31200
Year 4__________________ 31200 6240 24960
Year 5__________________ 24960 6240 18720
Year 6__________________ 18720 6240 12480
Year 7__________________ 12480 6240 6240
Year 8__________________ 6240 6240 0
I think it's B, to prevent unfair or deceptive business practices. I'm might be wrong though, so you may wanna just check with someone else. Hope this helps
Answer:
b.to verify that the ledger is in balance at the beginning of the next period.
Explanation:
Post-closing trial balance: In this trial balance, there is no role of net income as the temporary accounts are already closed and the net income is already transferred to the retained earnings account.
It is used to check that the debit balance and the credit balance is equal and balanced. Only the balance sheet item is displayed in this trial balance.
Thus, option b is correct as it carries forward the balance to the beginning of next period
Answer:
Decrease in Supply ; Increase in Price
Explanation:
Complements in Production are goods which are produced jointly using a given resource. Eg : Beef , leather belts & wheat , straw.
Law of Supply states that Price of a good & its supply are directly related. Price & supply of complements in production are also directly related.
If price of a good rises, supply of the good & its complement(s) in production rise. If price of a good falls, supply of the good & its complement(s) in production fall.
So: Leftwards shift in demand curve of beef, i.e decrease in demand of beef- will create excess supply of beef. Excess supply will create competition among sellers & reduce its price.
As beef & leather belt are complements in production : Decrease in price of beef will reduce the supply of leather belts. This decreased supply (leftwards shift) will create excess demand in leather belt markets & competition among buyers increase their price.