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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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the industry a set of offerings belongs to.

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3 years ago
Justice enterprises has current assets of $593 million and current liabilities of $316 million. what is their current ratio?
Inessa [10]
To solve this problem, first, we must know the formula to get the current ratio. 
                           Currents Assets
Current Ratio=  -------------------------
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So in this problem the current assets and current liabilities are given which are the following:
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2 years ago
The slope of the budget line represents an opportunity cost​ because, moving along the​ line,
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3 years ago
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,
dexar [7]

Answer:

The simple rate of return on the investment is closest to 19.16%

Explanation:

In order to calculate the the simple rate of return on the investment we would have to use the following formula:

simple rate of return = <u>Annual incremental net operating income</u>

                                                  Initial investment

<u />

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Annual cost savings = $133,000

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The simple rate of return on the investment is closest to 19.16%

6 0
3 years ago
Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just compl
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Answer:

Dr Work in Process 574,000

Dr Manufacturing Overhead 163,000

Cr Wages Payable 737,000

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Preparation of the journal entry to record the direct and indirect labor costs incurred during the year

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(Being to record direct and indirect labor costs incurred )

3 0
2 years ago
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