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natta225 [31]
2 years ago
8

The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. Th

e ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. How many units should the company order each time an order is placed if the company wishes to minimize total inventory cost?
Business
1 answer:
Mumz [18]2 years ago
8 0

Answer:

The company should order 100 units to minimize total inventory cost.

Explanation:

Given,

Annual Demand, D = 2,000 units

Order cost, S = $20

Purchase cost = $40

Holding cost, H = Purchase cost x percentage of holding cost

Holding cost = $40 × 20%

Holding cost = $8

We know, the company should order the highest number of products with a minimum cost, and for that, the company uses economic order quantity. Hence,

Economic Order Quantity (EOQ) = \sqrt\frac{2*D*S}{H} }

EOQ = \sqrt \frac{2*2,000*20}{8}

EOQ = \sqrt{10,000}

EOQ = 100

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gayaneshka [121]

Answer:

E is the correct option

Explanation:

Interactive marketing is one to one marketing practice which caters to individual customers. It involves marketing initiatives triggered by customer preference and behavior. It is different from the traditional methods which were campaign based. The customer-centric strategy and interactive marketing involve reacting to customer actions and by fulfilling their expectations. Different characteristics of interactive marketing are Storytelling, Layered information, Two-way interaction, etc.

5 0
2 years ago
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces a
Maslowich
The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
3 0
2 years ago
Read 2 more answers
1. On November 16, 2019, a U.S. company makes a sale to a customer in Germany. Under the sale terms, the customer will pay the c
Vlada [557]

Answer:

$125,000

Explanation:

Given the following resorted data from the question:  

                                          Spot Rate                   Forward Rate for

                                                                          March 16, 2020 Delivery

November 16, 2019             $1.250                               $ 1.248

December 31, 2019               1.260                                 1.255

March 16, 2020                    1.265                                  1.265

The applicable rate to use to calculate the amount the company will report sales revenue on its 2019 income statement is the spot rate ruling on the date the company made the sale to the customer in Germany, i.e. $1.250 on November 16, 2019.

Therefore, we have:

Sales revenue = €100,000 * $1.250 = $125,000.

Therefore, the amount the company will report sales revenue on its 2019 income statement is $125,000.

4 0
2 years ago
When Samantha, manager at ABC International, seeks and receives information from both web and industry journals, she is acting a
Brilliant_brown [7]

Answer:

D.monitor.

Explanation:

Samantha was acting as a monitor, when she seek and receives information from both web and industry journal.

Manager has multiple role to perform in the corporates as they need to monitor the information, which goes around their department or unit. Managers play a vital role of receiving the informations about internal and external events before transmiting it to other. Therefore, they need to monitor all source of information from the industry.

One author of management have  categories  the manager role into three major role:

  • Interpersonal role
  • Informational role
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Monitor fall into the sub category of informational role.

3 0
2 years ago
The following chart describes opportunities and challenges in the external environments that surround businesses. Which of the f
yKpoI14uk [10]

Answer:

Identity theft is a challenge in the technological environment of businesses, while the desire for green living presents opportunities for new businesses in the global environment.

Explanation:

6 0
2 years ago
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