These changes in strategy are indicative of internal forces of change. Internal forces of change in business refer to events, people and systems inside a company that aid or prevent it from fulfilling short term as well as long term goals.
Answer:
Order size= $57.61 per machine hour
Explanation:
Giving the following information:
Order size:
Estimated total overhead= $581,866
Estimated total machine hours= 10,100
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order size= 581,866 / 10,100
Order size= $57.61 per machine hour
Answer:
EOQ: 80
order per year: 10
Explanation:
We need to solve for the Economic Order Quantity:

Where:
D = annual demand = 800
S= setup cost = ordering cost = 16
H= Holding Cost = 4

EOQ = 80
Orders per year = 800 demand/ 80 order size= 10
Answer:
$4,714
Explanation:
Given that,
Cost of equipment = $58,750
Equipment was subject to depreciation of $6,964 for 2018 and 2019.
Sale value of equipment = $56,500
Net book value = Cost of equipment - Depreciation
= $58,750 - $6,964
= $51,786
Capital gain = Net book value - Sale value
= $51,786 - $56,500
= $4,714
Therefore, the Marquez recognize a gain of $4,714 on the sale of the equipment.
Answer:
Spot USD/GBP rate = 1.5711
(a) 1 year USD/GBP forward rate:
= [Spot rate × (1 + Domestic currency interest rate)] ÷ (1 + foreign currency interest rate)
= [1.5711 × (1+0.19%)] ÷ (1 + 0.39%)
= 1.56797, which means the USD will be at a forward premium
b) The observed 1 year forward rate is 1.60 which differs from the ideal forward rate.
This means an arbitrage opportunity exists here.
c) I would sell GBP forward for 1 year @ 1.60.
This means that I will receive USD 1.60 for every 1 GBP I sell instead of 1.56797 that is the ideal deal.
This is how I would take advantage of the arbitrage opportunity.