1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anvisha [2.4K]
3 years ago
7

Jack owns a local trucking company. With fuel costs being expensive, Jack wants to evaluate how much fuel, on average, he should

store in his 9,000 gallon fuel tank. Each year Jack uses 90,000 gallons of diesel (usage is spread evenly throughout the year). Jack knows with certainly that he can have a load of fuel delivered in 5 days. The price of fuel is $3.09 per gallon and there is a separate $120 ordering fee per order. Jack thinks his holding cost per unit is 30%. If Jack orders at EOQ, what will be the average inventory of fuel in his 9,000 gallon tank?
A. ≈1,206 gallons

B. ≈2,578 gallons

C. ≈2,413 gallons

D. ≈2,290 gallons
Business
1 answer:
Tcecarenko [31]3 years ago
3 0

Answer:

C. ≈2,413 gallons

Explanation:

For computing the average inventory, first we have to determine the economic order quantity which is shown below:

=\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{90,000}\times \text{\$120}}{\text{\$0.927}}}

= 4,827.1079 gallons

The carrying cost is

= Price of fuel × holding cost per unit

= $3.09 × 30%

= $0.927

Now the average inventory of fuel is

= Economic order quantity ÷ 2

= 4,827.1079 gallons ÷ 2

= 2,413 gallons

You might be interested in
Assume you are going to lunch and have a choice of two meals. The first meal would give an increase in marginal utility of 100 w
pantera1 [17]

Answer:

C) Third

Explanation:

The first meal gives you 4 units of utility for every dollar spent (= 100 utility / $25).

The second meal gives you 5 units of utility for every dollar spent (= 10 utility / $2).

The third meal gives you 10 units of utility for every dollar spent (= 50 / $5). We should choose the meal that provides us with the greatest utility per dollar.

3 0
3 years ago
Read 2 more answers
How would you characterize Semler's early leadership Style according to the article Leadership That GetsResults? Explain?
horrorfan [7]

Answer:

Semler's early leadership Style was the coercive one. He expected a lot from his employees believe in micromanaging his team. He always do overtime and expects the same from his employees/team as well.

Explanation:

Semler's early leadership Style showed that he wanted immediate success and be bossy in terms of selecting and firing the employees.

3 0
3 years ago
Which payment type is best if you are trying to stick to a budget?
Alja [10]
I think the best way would be credit
8 0
3 years ago
Determine the net income of a company for which the following information is available for the month of September. Service reven
Luba_88 [7]

Answer:

Net income                        167,800

Explanation:

The net income will be determinate by the difference of the revenues and revenues:

Service revenue                300,000

Salaries expense 81,000

Rent expense       48,000

Utilities expense     3,200

Total expenses                 <u>  132,200  </u>

Net income                        167,800

If provided with a tax rate, that value would be the earnigns before taxes (EBT)

We should also calculate the income tax and then, subtract the income tax to get the net income

6 0
4 years ago
Find the Houston's average monthly expenditure.
Fofino [41]

Answer:

2918.25

Explanation:

8 0
3 years ago
Other questions:
  • Michelle always drives down hampton avenue to go to the work. one morning michelle discovers that hampton avenue is closed at wo
    10·1 answer
  • True or false? an hie moves health information among organizations while adhering to national standards.
    12·1 answer
  • Bradley conducts research to validate his hypothesis that increased job satisfaction leads to greater organizational commitment
    12·1 answer
  • Mike Hansen has adjusted gross income of $82,000. During the year, Mike decided he needed a larger home. He purchased a home on
    7·1 answer
  • A(n) ____________ goal can be vulnerable to encouraging employee temptation toward dishonesty and to behave unethically if that
    10·1 answer
  • Promotional activities that are implemented to generate short-term excitement are
    15·1 answer
  • Explain what the implications are to the Canadian economy if the brain drain is not stopped? Within the implications, consider t
    5·1 answer
  • Brooks Company received proceeds of $188500 on 10-year, 8% bonds issued on January 1, 2018. The bonds had a face value of $20000
    8·1 answer
  • Which type of stock pays a fixed dividend, receives first priority in dividend payment, and maintains the right to a dividend pa
    10·1 answer
  • ______________ is often challenged as being an inefficient allocation of resources because it promotes monopoly power for some f
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!