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marishachu [46]
2 years ago
12

Eternal City operates several theme parks throughout the western United States and uses 30,000 gallons of machine oil on an annu

al basis. The parks operate 50 weeks per year and are considering 2 suppliers of oil, Sharps LTD and Winkler LLC. Sharps Price per unit is $4.00 and Winkler is $3.80. Sharps annual holding cost is $0.80 per unit and Winkler is $0.76. Sharps lead time is 4 weeks, Winkler is 6 weeks. Sharps admin costs are $4,000 and Winkler is $5,000 Annual Freight Costs Supplier 5,000 10,000 15,000 Sharps $5,000 $2,600 $2,000 Winkler $5,500 $3,200 $2,900 What are total annual costs given a shipment quantity of 5,000 gallons from Sharps? a. $139,230 b. $261,220 c. $456,000 d. $132,920 e. $139,220
Business
1 answer:
lyudmila [28]2 years ago
6 0

Answer:

$132,920

Explanation:

Annual demand D = 30,000

Order quantity Q = 5,000

Annual holding cost per unit H = $0.80

Annual holding cost = (Q/2)*H

Annual holding cost = (5,000/2)*$0.80

Annual holding cost = 2,500 * $0.80

Annual holding cost = $2,000

Annual shipping cost = $5,000

Unit cost = $4.00

Annual admin cost = $4,000

Lead time cost = (Lead Time*H*D)/Weeks per year

Lead time cost = 4*$0.80*30,000/ 50

Lead time cost = $1,920

Cost of product = Unit cost * D

Cost of product = $4 * 30,000

Cost of product = $120,000

Total cost = Total order cost + Holding cost + Admins cost + Cost of product + LT cost

Total cost = $5,000 + $2,000 + $4,000 + $120,000 + $1,920

Total cost = $132,920

Thus, the total annual costs given a shipment quantity of 5,000 gallons from Sharps is $132,920

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Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.
Gennadij [26K]

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

a)

($250,000 − $200,000)/$200,000 = 0.25 or 25%

b)

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

c.

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

7 0
3 years ago
the cost of land improvements are capitalized separately from land because land improvements tend to have a useful life.
lisabon 2012 [21]

Land improvements are capitalized separately from Land because land improvements have only a limited useful life.

Land is a special fixed asset which means that:

  • It is purchased for long term use
  • It is not depreciated because it lasts forever

Land improvements on the other hand, will not last forever. They will eventually wear out and need to be replaced. They are therefore capitalized separately from land so that they can be depreciated if need be.

In conclusion, land improvements are capitalized separately from land because they have a limited useful life.

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4 0
3 years ago
The growth of the global company has led to the growth of global fund raising as companies seek low-priced sources of funds thro
pishuonlain [190]

The correct options about the international obtaining of funds are:

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The money market is a good form to obtain money to capitalize a company, it functions when an enterprise negotiate debt instruments to short term, giving to the buyer low risk and high profitability, in this form, the company obtain for a shor term a large mount of money and can invest in technology, resources or others to improve and grow.

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4 0
2 years ago
Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh d
Gnoma [55]

Answer:

The optimal order quantity is 316 pounds

Explanation:

In order to calculate What daily order quantity is optimal, we have to calculate first The cost of underestimating the demand Cu and cost of overestimating demand Co

Cu = ($0.60 - $0.50)*4 = $0.40

Co = $1 - $0.80 = $0.20

Next we have to calculate the Service Level = Cu / (Cu + Co)

= 0.40 / (0.40 + 0.20)

= 0.40/0.60

= 0.6667

So, Z Value at above service level = 0.430727

Therefore, in order to calculate the Optimal Order quantity, we would have to use the following formula

Optimal Order quantity= Mean + Z Value × Std Deviation

= 301 + 37 * 0.430727

= 301 + 15.36899

= 316 pounds

7 0
2 years ago
Businesses should customize invoices to best detail the products or services they provide.
Doss [256]

Answer: A

Explanation:

5 0
2 years ago
Read 2 more answers
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