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.
Answer:
SMEs have realised the importance of E-commerce and using it to gain growth and sustainability.
Explanation:
E-commerce has been a revolutionary step for small scale enterprises and customers towards ease of doing business and e- commerce has helped business to grow and expand. It has helped enterprises to increase their revenue, low operational cost and online presence. Customers can buy goods and services just by a click. They prefer e-commerce because everything is accessible online.
Answer:
1) $9615.38
2)$9245.56
3) b is the correct option.
Explanation:
See the attached pictures for detailed answer.
Answer:
b. Forward integration.
Explanation:
<u><em>Forward integration:</em></u> is a type of marketing strategy where the company directly distribute or supply its product to the retailer, this is done so as to be to sell directly to the retailer without going through the wholesaler. This is achieved by having warehouses that is closer to the retailers where the products can be sold to the retailers or directly selling the product to the retailer from the company.
Answer:
D. The market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.
Explanation:
One explanation of the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond, is that <u>the market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the coupon interest rate as the time to maturity declines.</u>
According to the definition of yield to maturity, it takes into consideration the coupon rate (i.e. the interest amount earned per year) for the number of years left to maturity, it is often higher because it treats the amount earned each year as being re-invested.
<u>Therefore the amount of yield to maturity will fall as the time to maturity nears and will approach the coupon rate</u>
Secondly, A bond's par value is the dollar amount it will be worth when it reaches maturity.
Before its maturity date, the bond may sell for more than par value on the secondary market as the yield it pays becomes more attractive to buyers.
<u>Therefore the difference between par value and market value is the yield. hence as maturity nears, yield to maturity falls and market value approaches par value because the bond is what its par upon maturity.</u>