Answer:
a. 300 units
b. $3,750
c. $3,750
d. 100 units
Explanation:
a. The computation of the economic order quantity is shown below:
= 
= 
= 300 units
b. For annual holding cost, first we have to find out the average inventory would equal to
= Economic order quantity ÷ 2
= 300 units ÷ 2
= 150 units
Now the Carrying cost = average inventory × carrying cost per unit
= 150 units × $25
= $3,750
c. For ordering cost, first we have to compute number of orders would be equal to
= Annual demand ÷ economic order quantity
= $15,000 ÷ 300 units
= 50 orders
Now Ordering cost = Number of orders × ordering cost per order
= 50 orders × $75
= $3,750
d. The computation of the reorder point is shown below:
= (Annual demand ÷ total number of days in a year ) × lead time
= (15,000 units ÷ 300 days) × 2 working days
= 100 units
Answer:
a. limited liability for members.
Explanation:
One of the important if not the most important characteristics in starting a limited liability company is limited liability for members, since the whole company structure revolves around this aspect. This refers to the shareholders being responsible for any debt incurred by the company, but only to the extent of their company shares.
Answer:
When two or more people own community property like a home, either as joint tenants or tenants in common, each individual owns a share (or interest) of the entire property
Explanation:
SIMILARITY
When two or more people own community property like a home, either as joint tenants or tenants in common, each individual owns a share (or interest) of the entire property. This means that specific areas of the property are not owned by one individual, but rather shared as a whole.
DIFFERENCE
1. Ownership Interest : Tenants in common may be created at different times; so an individual may <u>obtain an interest in the property years after the other individuals</u> have entered into a tenancy in common ownership BUT Joint tenants, on the other hand, must obtain<u> equal shares of the property with the same deed at the same time.</u>
2. Right of Survivorship : <u>One of the main differences between the two types of shared ownership is that Joint tenants have right of survivorship and tenants in common do not</u>.
One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies.
In Joint Tenants the interest of a deceased owner automatically gets transferred to the remaining surviving owners but not the case in tenants in common.
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Answer:
Annual equivalent cost of the investment = $30,603.43 per annum
Explanation:
<em>Equivalent Annual cost is the Present Value of the total cost over the investment period divided by the appropriate annuity factor.</em>
<em>Step 1 </em>
<em>PV of cash flows</em>
PV of first cost = 150,000
<em>PV of annual maintenance cost of $17,500</em>
= 17,500× (1-(1+0.08)^(-30))/0.08
= 197,011.21
<em>PV of salvage value</em>
$25,000 × (1+0.08)^(-30)
= 2,484.43
<em>PV of net total cost </em>
= 197,011.21 +150,000 - 2,484.43
= 344,526.78
Step 2
<em>Determine the annuity factor for 30 years at 8%</em>
(1-(1+0.08)^(-30))/0.08
=11.2577
Step 3
<em>Equivalent annual cost</em>
= 344,526.78 / 11.2577
<em> =$30,603.43</em>
Annual equivalent cost of the investment = $30,603.43 per annum
You can make a total of 9 combinations consisting of one meat and one bread
