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Galina-37 [17]
3 years ago
8

A produce distributor uses 779 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an ann

ual carrying cost of 39 percent of the purchase price per crate. Ordering costs are $27. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ
Business
1 answer:
labwork [276]3 years ago
5 0

Answer:

$1,498.86

Explanation:

Given that;

Packing of crates per month(u) = 779

Annual carrying cost of 39% of the purchase price per crate

Ordering cost (S) = $27

D = 779 × 12 = $9,348 crates per year

H = 0.39P

H = 0.39 × $12

H = $4.68 crates per year

Total ordering cost = D/Q × S

= ( $9,348 / 779 ) × $27

= $324

Total Holding cost = Q / 2 × H

= ( 779 / 2 ) × $4.68

= $1,822.86

Annual savings = Total holding cost - Total ordering cost

= $1,822.86 - $324

= $1,498.86

The firm would be saving $1,498.86 annually.

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Answer:

If Schmaltz pays the same amount of dividends, its payout ratio will:

change.

Explanation:

Since the revenue and costs will change in the current year, with some increase in the corporate income tax rate by the IRS, the earnings per share will also change.  If the amount of dividends paid out does not change, the payout ratio will still change as a result of the change in the earnings per share.

Schmaltz's payout ratio shows the relationship between the dividends paid to shareholders and the company's earnings.  The simplest way to calculate the payout ratio is to divide the dividend per share by the earnings per share, then multiplied by 100.

6 0
3 years ago
Three possibilities are equally likely and have payoffs of $3, $6, and $9. the expected value is:_________
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When three possibilities are equally likely and have payoffs of $3, $6, and $9. Then the expected value will be $6.

<u>What is Expected Value? </u>

Expected value refers to when you play the game it will tell you the probability or winning chance and amount to win.

Hence, in the above questions, there are equally likely possibilities.

So, in this case, the probability for each possibility is 1/3.

We can calculate the expected value (EV) as:

EV=((1/3) x $3) +  ((1/3) x $6) + ((1/3) x $9)

   =1 + 2 + 3

   =$6

Therefore, the expected value will be $6 when three possibilities are equally likely and have payoffs of $3, $6, and $9.

You can learn more about expected value at brainly.com/question/24305645

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4 0
2 years ago
Bellucci Corporation has provided the following information: Cost per UnitCost per Period Direct materials$6.70 Direct labor$3.5
Nikolay [14]

Answer:

The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units is closest to $11.40

Explanation:

It is important to note that the question requires The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units

From Production of 10500 units to 10501 units, there is an increment of 1 unit.

<u>Lets find the incremental cost of 1 unit.</u>

1.To do this we only consider variable manufacturing costs only.

2.Since increase is within the relevant range, the fixed manufacturing overheads do not change.

3.Also Ignore all non- manufacturing overhead as they do not form part of manufacturing costs.

                                                         Extra 1 Unit

Direct materials                                    $6.70

Direct labor                                           $3.50

Variable manufacturing overhead     $1.20

Total Cost                                             $11.40

4 0
4 years ago
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Answer:

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3 0
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Answer:

he is still getting paid while he is out. He probably has a doctors note.

Explanation:

idk what the question is.

8 0
4 years ago
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