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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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On April 1, 2017, La Presa Company sells some equipment for $18,000. The original cost was $50,000, the estimated salvage value
aksik [14]

Answer:

Option (a) is correct.

Explanation:

Depreciation in 2017:

=\frac{Original\ cost-Salvage\ value}{Useful\ life}\times time\ period

=\frac{50,000-8,000}{6}\times\frac{3}{12}

      = $1,750

Accumulated Depreciation = $29,400 + Depreciation in 2017

                                             =  $29,400 +  $1,750

                                             =  $31,150

Book value on date of sale = Original cost - Accumulated Depreciation

                                             = 50,000 - 31,150  

                                              = 18,850

Loss on sale = Book value on date of sale - Sales price

                     = 18,850 - 18,000

                     = $850 (Loss)        

8 0
3 years ago
Read 2 more answers
What is the future value of $1800 invested today at 18% interest in 30 years with interest compounded quarterly?
Lynna [10]

Answer:

Future value of amount will be $354182.711

So option (C) will be the correct option

Explanation:

We have given present value P=$1800

Rate of interest r = 18 %

Time t = 30 years

As interest is paid quarterly so

Rate of interest r=\frac{18}{4}=4.5%

And time period = 30×4 = 120

Future value is given by A=P(1+\frac{r}{100})^n=1800\times (1+\frac{4.5}{100})^{120}=1800\times 196.768=$354182.711

So future value of amount will be $354182.711

So option (C) will be the correct option

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3 years ago
Siiri invests 10 % in real estate, 40 % in mutual funds, 25 % in government bonds, and 25 % in stocks. what do Siri’s investment
jeka57 [31]

Answer: Asset allocation

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Asset allocation refers to the strategy of investing in different types of assets and investment vehicles so that the risks would be balanced by the rewards to be earned so that the investor will benefit.

Asset allocation is usually based on the investor's investment goals and their risk appetite. Those who are more risk tolerant will usually invest more in stocks so Siiri here is most likely risk averse but based on the percentage that went into stocks, they might be more risk neutral.

4 0
3 years ago
What does the CIO of a company do?
Fittoniya [83]
D. Manage the technological areas pf the company
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If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going
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