How did you find the total expense?

Scenario 1 Your deliveries to retail stores have not been on time lately, and neither have the departures of loaded trucks from

Feliz [49]

Answer:

Answer is explained in the explanation section below.

Explanation:

1. What are the root causes of late deliveries, according to you?

To begin, we must assess the current distribution network. The route of delivery (roadway), truck driver skills, poor fleet performance/condition, high unloading time at retailer stores, high truck turnover around time, and a variety of other factors are all factors that contribute to late deliveries.

2. How can you change operations to make things better?

Such options for improving the situation include:

Increasing the network's versatility by incorporating a new fleet of trucks of various sizes.

If there are several fulfilment centers, centralizing inventory (aggregation benefits) or locating new ones closer to the retailer's location are both options.

Improved forecasting approaches so that plans can be planned ahead of time

Examining the most efficient or shortest route or path between the warehouse and the retail stores.

3. What role does the warehouse inventory situation play in the issue of late deliveries?

Taking appropriate pre-cautionary steps at the warehouse level is one of the suggested ways to resolve the concerns about late deliveries.

According to the criteria, use LIFO (Last In, First Out) or FIFO (First In, First Out) inventory mechanisms.

Managing inventory at the retailer's shop by requesting additional shelf space or other storage facilities.

Organizing the products in the warehouse by product variety or in a desired series that is convenient to pick up would reduce truck waiting times.

Reviewing inventory levels and replenishing needed inventory on a regular basis to avoid stock outs and ensure safety stock availability.

7 0

3 years ago

Gladstone Co. has expected sales of $360,000 for the upcoming month and its monthly break even sales are $342,500. What is the m

antoniya [11.8K]

Answer:

4.86%

Explanation:

Given that

Expected sales = $360,000

Break-even sales = $342,500

The computation of the margin of safety is shown below:-

Margin of safety (in percent) = (Expected sales - Break-even sales) ÷ Expected sales

= ($360,000 - $342,500) ÷ $360,000

= $17500 ÷ $360,000

= 4.86%

Therefore, for computing the margin of safety we simply deduct break even sales from expected sales and after result we divide with expected sales.

3 0

3 years ago

$1,621,000 and will produce $307,000 per year in years 5 through 15 and $570,000 per year in years 16 through 25. The U.S. gold

Georgia [21]

Answer:

The Australian mine : NPV = $125,865.68

For US MINE: NPV = $117,922.09

Explanation:

The question appears incomplete. Here is the full question:

Highland Mining and Minerals Co. is considering the purchase of two gold mines. Only one investment will be made. The Australian gold mine will cost $1,621,000 and will produce $307,000 per year in years 5 through 15 and $570,000 per year in years 16 through 25. The U.S. gold mine will cost $2,086,000 and will produce $281,000 per year for the next 25 years. The cost of capital is 12 percent. Use Appendix D for an approximate answer but calculate your final answers using the formula and financial calculator methods. (Note: In looking up present value factors for this problem, you need to work with the concept of a deferred annuity for the Australian mine. The returns in years 5 through 15 actually represent 11 years; the returns in years 16 through 25 represent 10 years.)

Calculate the net present value for each project

The Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator.

For The Australian mine,

Cash flow in year 0 = $1,621,000

Cash flow each year from year 5 to 15 = $307,000

Cash flow each year from year 16 to 25 = $570,000

I = 12%

NPV = $125,865.68

For the US mine ,

Cash flow in year zero = $-2,086,000

Cash flow each year from year one to twenty five = $281,000

I = 12%

NPV = $117,922.09

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

3 years ago

Suppose a manufacturing plant is considering three options for expansion. The first one is to expand into a new plant (large), t

sp2606 [1]

Answer:

a. $50,000

b. $77,500

c. $27,500

d. Large expansion or plant

Explanation:

a. What is the highest Expected Monetary Value (EMV)?

1. EMV of Large expansion = ($100000×0.50) + ($10000×0.25) + (-$10000×0.25)

EMV of Large expansion =

2. EMV of Medium expansion = ($40000×0.50) + ($40000×0.25) + ($5000×0.25)

EMV of Medium expansion = $31,250

3. EMV of Small expansion = ($15000×0.50) + ($15000×0.25) + ($15000×0.25)

EMV of Small expansion = $15,000

The highest EMV is $50,000 which is the EMV of Large expansion.

b. What is Expected Value with Perfect Information (EVwPI)?

EVwPI is obtained by adding together the expected value of the highest profit from each of the expansions as follows:

EVwPI = ($100000×0.50) + ($40000×0.50) + ($15000×0.50)

EVwPI = $77,500

c. What is the organization willing to pay for perfect information?

This requires the calculation of Expected Value of Perfect Information (EVPI). This can be obtained as follows:

EVPI = EVwPI - EVwoPI

Where EVwoPI denotes Expected Value without Perfect Information and it is is the highest EMV of $50,000 which is the EMV of Large expansion obtained in a above.

Substituting the figures, we have:

EVPI = $77,500 - $50,000 = $27,500

d. Which of the expansion plans should the manager choose?

The manager should choose the large expansion because it has the highest or maximum EMV of $50,000.

4 0

3 years ago

Read 2 more answers

Cascade Company was started on January 1, Year 1, when it acquired $151,000 cash from the owners. During Year 1, the company ear

erica [24]

Answer:

Cascade Company

Income statement for the year ended year 1

Sales Revenue $90,600

Less Expenses $62,000

Net Income $28,600

Cascade Company

Statement of changes in equity for the year ended year 1

Capital Retained Income Total

Beginning of the Year :

Opening Balance $151,000 $ 0 $151,000

During the Year :

Profit for the year - $28,600 $28,600

Dividends paid - ($13,000) ($13,000)

Total $151,000 $15,600 $166,600

Cascade Company

Balance Sheet as at year 1

ASSETS

Cash ($151,000 + $90,600 - $62,000 - $13,000) $166,600

Total Assets $166,600

EQUITY AND LIABILITIES

Equity $166,600

Total Equity and Liabilities $166,600

Cascade Company

Statement of Cashflow for the year ended year 1

Cash flow from Operating Activities

Cash receipts from customers $90,600

Cash payments to suppliers and employees ($62,000)

Net Cash from Operating Activities $28,600

Cash flow from Investing Activities

No Investment activities

Net Cash from Investing Activities $0

Cash flow from financing Activities

Capital Invested $151,000

Dividends Distributions ($13,000)

Net Cash from Investing Activities $138,000

Movement during the year $166,600

Beginning Cash and Cash Equivalents $0

Ending Cash and Cash Equivalents $166,600

Explanation:

The income statement, statement of changes in equity, balance sheet, and statement of cash flows for Cascade Company have been prepared above.

Note : Make sure to take note of the format and appropriate heading of each statement.

8 0

3 years ago