When gathering information, which of the following tasks might you need to

Elizabeth Kennedy sells beauty supplies. Her annual demand for a particular skin sparkle is 17,000 units. The cost of placing an

elena-s [515]

Answer:

The minimum cost will be "$214085".

Explanation:

$D = 1700 units \\\\S = \$ 50 \\\\H= 20%\\$

i) When quantity = 1-1500, price = $ 12.50 , and holding price is $12.50 * 20 %= $2.50.

ii) When quantity = 1501 -10,000, price = $ 12.45 , and holding price is $12.45 * 20 %= $2.49.

iii) When quantity = 10,0001- and more, price = $ 12.40 , and holding price is $12.40 * 20 %= $2.48.

$EOQ= \sqrt{\frac{2DS}{H}} \\\\EOQ1= \sqrt{\frac{2\times 17000\times 50}{2.50}} \\\\EOQ1=824.62 \ \ \ or \ \ \ 825\\$

$EOQ2= \sqrt{\frac{2\times 17000\times 50}{2.49}} \\\\EOQ1=826.2T \ \ \ or \ \ \ 826\\$

$EOQ3= \sqrt{\frac{2\times 17000\times 50}{2.48}} \\\\EOQ3=827.93 \ \ \ or \ \ \ 828\\$

know we should calculate the total cost of EOQ1 and break ever points (1501 to 10,000)units

$total \ cost = odering \ cost + holding \ cost + \ Annual \ product \ cost\\\\total_c = \frac{D}{Q} \times S + \frac{Q}{2} \times H + (p \times D) \\\\T_c = \frac{17000}{825} \times 50+ \frac{825}{2} \times 2.50 + (12.50 \times 17000)\\\\T_c = 1030 .30 +1031.25+212500\\\\T_c =$ 214561.55\\\\$

$T_c = \frac{17000}{1501} \times 50+ \frac{1501}{2} \times 2.49 + (12.45 \times 17000)\\\\T_c = 566.28 +1868.74+211650\\\\T_c =$ 214085.02 \ \ \ or \ \ \ $ 214085\\\\$

$T_c = \frac{17000}{10001} \times 50+ \frac{10001}{2} \times 2.48 + (12.40 \times 17000)\\\\T_c = 84.99+ 12401.24+210800\\\\T_c =$ 223286.23 \\$

The total cost is less then 15001. So, optimal order quantity is 1501, that's why cost is = $214085.

5 0

3 years ago

Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing

enot [183]

The answer is Functional.

8 0

3 years ago

Which of the following bonds would have the lowest interest rate? All of the bonds have 10 years to maturity

Rashid [163]

Answer:

C. Mortgage bond rated AAA is the correct answer.

Explanation:

4 0

3 years ago

Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,800 account of a customer

laila [671]

Explanation:

The Journal entry is shown below:-

On Jan 31

Allowance for doubtful accounts $2,800

To Accounts receivable - C. Green $2,800

(Being the uncollectible amount is recorded)

Mar 09

Accounts receivable - C. Green $2,300

To Allowance for doubtful accounts $2,300

(Being the written off amount is recorded

Mar 09

Cash $2,300

To Accounts receivable - C. Green $2,300

(Being the payment is received is recorded)

7 0

3 years ago

Read 2 more answers

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $9.10. D

Marrrta [24]

The price variance for Ruby company is at an unfavorable position that is $19,415, the quantity variance stands at $6,370 (favorable condition) and the cost variance has unfavorable balance that is equal to $13,045.

<h3>What is a variance?</h3>

A variance in accounting is the distinction between a forecasted quantity and the real quantity. Variances are common in budgeting, however, you may have a variance in something which you forecast.

As per the information, we have to calculate:

a) Price variance: (Standard Price - Actual price) * Actual Quantity

Price variance: ($9.10 - $9.65) * 35,300

Price variance: $0.55 * 35,300

Price variance: $19,415 Unfavorable.

b) Quantity variance = (Standard Quantity - Actual Quantity) * Standard Price

Quantity variance = (7,200 * 5 - 35,300) * $9.10

Quantity variance = (36,000 - 35,300) * $9.10

Quantity variance = $6,370 Favorable.

C) Cost variance = $19,415 Unfavorable + $6,370 Favorable

Cost variance = $13,045 U

Hence, The price variance for Ruby company is at an unfavorable position that is $19,415, the quantity variance stands at $6,370 (favorable condition) and the cost variance has an unfavorable balance that is equal to $13,045.

learn more about variance:

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5 0

2 years ago