Answer:
It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000
Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)
In alternative E) all $125,000 is lost
In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)
Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.
The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center
Answer:
Order cycle time = 28.85 days
Explanation:
<em>The Economic Order Quantity (EOQ</em>) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.
It is computed using he formula below
EOQ = √ (2× Co× D)/Ch
Co- ordering cost, Ch- Holding cost per unit per annum
D- Annual demand,
EOQ - Economic order qunatity
Co-125. Ch- 2.50, D- 40,000
EOQ= √ (2× 125× 40,000)/2.5
EOQ = 3,162.27
The cycle time = order quantity/annual demand× 365 days
= 28.85 days
Answer: None
Explanation: The IRS commuting rule allows for business travel expenses to be deducted as business expenses but this does not apply to commuting expenses.
Business travel expenses include Judi driving the company car to customer's locations or using any other form of transportation to meet a client. It even covers travelling by plane to another state for the same purpose.
It however does not apply to travelling between home and work, this is a daily travel expense as you need to get to work anyway.
Answer:
To minimize risk, investors should investigate the market and diversify its portfolio.
Interest that builds on the principle and the interest already gained is compound interest
Money invested in a CD
always have a fixed rate of return and is less risky than money used to purchase a home.
