answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
shusha [124]
2 years ago
15

Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost $8.00, annual demand of 4

0000, and ordering cost of $48.
Business
1 answer:
torisob [31]2 years ago
7 0

Answer:

Total cost = Total ordering cost + Total holding cost

Total cost = DCo     + QH

                     Q              2

Where

D = Annual demand

Co = Ordering cost per order

Q = EOQ

H = Holding cost per item per annum

D = 40,000 units

Co = $48

H = 18% x $8.00 = $1.44

EOQ = √2DCo

                H

EOQ = √2 x 40,000 x $48

                     $1.44

EOQ = 1,633 units

Explanation:

EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.

You might be interested in
The Carmichael Company started operations this month and had the following transactions 1. Owners invested $20,000 to start the
myrzilka [38]

Answer:

The company's cash balance at the end of the month is $9,125.

Explanation:

<u>Cash Account</u>                             DR.          CR.            Balance

1. Owners Investment                $20,000                    $20,000

2. Purchased 55 units                                $7,425      $12,575

3. Sale 25 units                          $4,750                       $17,325

4. Office Rent Payment                               $2,900     $14,425

5. Payroll Payment                                      $4,500     $9,925

6. Paid dividends of                                    $800        $9,125

4 0
2 years ago
A quality control activity analysis indicated the following four activity costs of an administrative department:
Doss [256]

Answer:

total sales are the internal failure costs is 2%

Explanation:

given data

form to reduce errors =  $15,000

customer complaints = 75,000

Verifying = 30,000

Correcting errors = 60,000

Total = $180,000

sales = $3,000,000

to find out

total sales are the internal failure costs

solution

we know here that internal failture cost is express as

internal failture cost  = correcting error in form   ...........1

internal failture cost  =  $60000

and

internal failture cost as % of total cost is here as

internal failture cost to sale = \frac{internal\ failture\ cost}{sales}   .......2

internal failture cost to sale = \frac{60000}{3000000}

internal failture cost to sale = 2%

so total sales are the internal failure costs is 2%

3 0
2 years ago
Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring" platform. The company further moved
Nastasia [14]

Answer:

C) category points-of-parity.

Explanation:

With category points-of-parity the emphasis is on Nivea brand offering the relevant category features. These are features a brand must have to be considered competitors in a particular industry.

So for deodorants people want to know if they are strong, will the shampoo clean effectively, and will cosmetics be colourful.

Without these key features in the products Nivea would lose competitive advantage.

8 0
2 years ago
Stock Y has a beta of 1.2 and an expected return of 12.1%. Stock Z had a beta of 0.8 and an expected return of 7.85%. The risk-f
levacccp [35]

Answer:

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

Explanation:

<em>To determine whether or not the stocks are correctly priced ,</em>

<em>we have to compare the r</em><em>equired return</em><em> and the </em><em>expected return on each of them.</em>

Required return = Rf +β (Rm-Rf)

Note that Rm-Rf  is also known as market risk premium

                                  <em>Stock Y                         Stock Z</em>

<em>Required return   </em>       2.4% + 1.2(7.2%)            2.4% + 0.8(7.2%)

                                  = 11%                                   = 8.2%

<em>Expected return</em>            <em>12.1%                           7.85%</em>

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

6 0
2 years ago
The excerpt from standing stone discussed in your lectures is entitled movement iv - strings pluck, horns blow, drums beat - #15
kow [346]
Had to look for the options and here is my answer. The term that best fits the blank is "GLORY TALES". This is taken from "Standing Stone" that was written by Phil J. Harrison and this was discussed in the lectures. Hope this answers your question.
5 0
2 years ago
Other questions:
  • One disadvantage of renting a home is , which directly affect what the renters can and can’t do in and around the house. On the
    10·2 answers
  • He fourth stage in the marketing process is to build and sustain enduring customer relationships. the key elements of this proce
    9·1 answer
  • Determine what paul will have to pay on an annual bases for his $449,000 home if his insurance company is charging him $0.41 per
    11·1 answer
  • 1.) What was the point of the opening story about the prevalence of bribery in Iraq?
    9·1 answer
  • Which of the following statements is true of the sources of competitive advantage?
    14·1 answer
  • The following two errors were made in the physical inventory counts: 1. 2012 ending inventory was overstated by $33,000. 2. 2013
    10·1 answer
  • Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,800 rackets and sold 5,700. Each
    8·1 answer
  • Chen Company's account balances at December 31, 2017 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,00
    6·1 answer
  • Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $841,000. Its inventory as of D
    15·1 answer
  • Problem 14-15 Finding the WACC [LO3] You are given the following information for Watson Power Co. Assume the company’s tax rate
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!