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Ronch [10]
3 years ago
12

Firm A's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with

a 10% discount for orders of 15 units or higher. Firm A incurs a 25% annual holding cost. What is Firm A's annual ordering costs if it orders at a quantity of 28 units?
Business
1 answer:
lys-0071 [83]3 years ago
8 0

Answer:

Annual ordering cost=$32.142

Explanation:

Annual ordering cost = Annual demand/order quantity × ordering cost per order

Annual demand = 15 × 12 = 180 units

Kindly note that there are 12 months in year.

Annual Ordering cost = 180/28 ×  $5= $32.142

Annual ordering cost=$32.142

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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and woul
Margarita [4]

Answer:

"Decrease by 250" is the appropriate response.

Explanation:

The given values are:

Revised fixed cost,

= $150,000

Current selling price,

= $100

Current variable cost,

= $60

Current contribution will be:

=  Current \ selling \ price-Current \ variable \ cost

=  100-60

=  40

Now,

The revised BEP will be:

=  \frac{Revised \ fixed \ cost}{Revised \ contribution}

On substituting the values, we get

=  \frac{150,000}{40}

=  3750 \ units

hence,

=  4000-3750

=  250

Thus the above is the correct answer.

4 0
3 years ago
In a large corporation, shareholders responsibilities include ________.
tankabanditka [31]
~Hello There!~

I'd say it is Electing a board of directors.

Hope This Helps You!
Good Luck :)
Have A Great Day ^_^

- Hannah ❤
5 0
3 years ago
What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and
ioda

Answer:

P V = 1669,5

Explanation:

After seven years, future payment will be 9800$ and from there on we will have 23 annual payments more:

P V = 9800/(1+0.08)^23 = 9800/5,87 = 1669,5

8 0
3 years ago
Hayes Bakery has sales of $30,600, costs of $15,350, an addition to retained earnings of $4,221, dividends paid of $469, interes
scZoUnD [109]

Answer:

$8,013

Explanation:

The computation of the amount of the depreciation expense is shown below:

The net income is

= An addition to retained earnings + cash dividend paid

= $4,221 + $469

= $4,690

Now the earning before tax

= (Net income) ÷ (1 - tax rate)

= ($4,690) ÷(1 - 0.21)

= $5,937

Now the earning before tax and interest is

= $5,937 + $1,300

= $7,237

So, the depreciation expense is

= $30,600 - $15,350 - $7,237

= $8,013

8 0
3 years ago
Shell Enterprise is a soft toy manufacturer. It sells its toys to ToySpot, a company that sells a wide range of toys to the publ
geniusboy [140]

Answer:

ToySpot in this scenario is a soft toy retailer; this means it deals with customers directly and at the same location.

4 0
3 years ago
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