Answer:
a. 208.57 units
b. 104.29 units
Explanation:
a. The computation of the economic order quantity is shown below:


= 208.57 units
b. And, the average inventory is
= Economic order quantity ÷ 2
= 208.57 units ÷ 2
= 104.29 units
We simply applied the above formulas for calculation of the economic order quantity and the average inventory and the same is shown above
Answer:
PV= $30,111.98
Explanation:
Giving the following information:
Future value= $60,000
Number of periods= 8
Interest rate= 9%
<u>To calculate the initial investment, we need to use the following formula:</u>
FV= PV*(1+i)^n
<u>Isolating PV:</u>
PV= FV/(1+i)^n
PV= 60,000 / 1.09^8
PV= 30,111.98
Answer:
a. Journal entries to record the reinstatement of the account receivable
Account Title and Description Debit Credit
Account receivable account $600
Allowance for Doubtful Accounts account $600
(Reinstatement of the account receivable)
b. Journal entries to record the receipt of cash
Account Title and Description Debit Credit
Bank Account $600
Account receivable account $600
(Receipt of cash)
Answer:
The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero
Break Even sales for Company wide = $378,000
Break Even Value for Chicago is $111,429
And Break Even Value for Minneapolis is $120,000
The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.
Explanation: