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
Zina [86]
2 years ago
12

A supermarket expects to sell 1000 boxes of sugar in a year. Each box costs $2, and there is a fixed delivery charge of $20 per

order. If it costs $1 to store a box for a year, what is the order size and how many times a year should the orders be placed to minimize inventory costs
Business
1 answer:
Strike441 [17]2 years ago
4 0

Answer:

Order size = 200 units

Number of order  = 5 times

Explanation:

<em>The number of order per year  will be equal to the Annual demand divided by the EOQ.</em>

<em>No of orders = Annual Demand / EOQ</em>

Economic order quantity (EOQ)

The Economic Order Quantity (EOQ) 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 formulae below

EOQ = √(2× Co× D)/Ch

Ch- Carrying cost per unit per annum-  $1

Co- Ordering cost per order -20

EOQ =√(2× 20× 1000)/1

        = 200 units

Order size = 200 units

Number of order = 1000/200 = 5 times

You might be interested in
From the set $\{1, 2, 3, \dots, 20\},$ ten numbers are chosen at random, forming a subset. Let $M$ be the largest element among
Marysya12 [62]

The largest element can be as small as 10, which happens when the subset is {1, 2, ..., 10}.  The probability of choosing this subset is (1/2)^10 = 1/1024.  (Every element from 1 to 10 can either be in the subset, or not.)

The largest element can also be 11.  All the numbers in the subset must be from 1 to 10, and we must choose 1 to leave out, so the probability that the largest element is 11 is C(10,1)*1/1024.

The largest element can also be 12.  All the numbers in the subset must be from 1 to 11, and we must choose 2 to leave out, so the probability that the largest element is 12 is C(11,2)*1/1024.

We can do the other cases similarly:

Largest element is 13 -> C(12,3)*1/1024

Largest element is 14 -> C(13,4)*1/1024

Largest element is 15 -> C(14,5)*1/1024

Largest element is 16 -> C(15,6)*1/1024

Largest element is 17 -> C(16,7)*1/1024

Largest element is 18 -> C(17,8)*1/1024

Largest element is 19 -> C(18,9)*1/1024

Largest element is 20 -> C(19,10)*1/1024

Adding these up, we get (1 + C(10,1) + C(11,2) + ... + C(19,10))*1/1024.  Since 1 = C(9,0), we also get (C(9,0) + C(10,1) + C(11,2) + ... + C(19,10))*1/1024.

By the Hockey Stick Identity, C(9,0) + C(10,1) + C(11,2) + ... + C(19,10) = C(20,10), so the expected value of the largest element is 1/11*C(20,10)*1/1024 = 4199/256.

6 0
1 year ago
Depreciation Methods On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used in the fabrication of a part
Studentka2010 [4]

Answer:

Part A  

1. Straight-line.    

Year   Depreciation expenses ($)  

2018  228,750  

2019  228,750  

2020  228,750  

2021  228,750  

2. Double-declining balance.  

Year   Depreciation expenses ($)  

2018  460,000  

2019  230,000  

2020  115,000  

2021  110,000  

3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)    

Year   Depreciation expenses ($)  

2018  198,913  

2019  348,098  

2020  258,587  

2021  109,402  

Part B  

1. Straight-line.    

Year   Depreciation expenses ($)  

2018  114,375  

2019  228,750  

2020  228,750  

2021  228,750  

2022  114,375  

2. Double-declining balance.  

Year   Depreciation expenses ($)  

2018  230,000  

2019  345,000  

2020  172,500  

2021  86,250  

2022  81,250  

3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)    

Year   Depreciation expenses ($)  

2018  99,457  

2019  273,505  

2020  303,342  

2021  183,995  

2022  54,701  

Explanation:

Note: See the calculation in the attached excel file.

Download xlsx
8 0
2 years ago
Read 2 more answers
Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows
aliina [53]

Answer:

Results are below.

Explanation:

a)

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,325,000 / 20,000

Predetermined manufacturing overhead rate= $116.25 per direct labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH=  116.25*375

Allocated MOH= $43,493.75

<u>b)</u>

Total cost= 5,000 + 7,500 + 43,493.75

Total cost= $55,993.75

<u>c)</u>

Selling price= 55,993.75*1.3

Selling price= $72,791.88

<u>d)</u>

<u>First, we need to calculate the activities rate:</u>

<u></u>

Maintenance= 210,000 / 10,000= $21 per machine hour

Materials handling= 90,000 / 2,000= $45 per material move

Setups= 75,000 / 100= $750 per setup

Inspection= 150,000 / 4,000= $37.5 per inspection

Now, we can allocate overhead:

Maintenance= 21*150= 3,150

Materials handling= 45*4= 180

Setups= 750*2= 1,500

Inspection= 37.5*3= 112.5

Total allocated costs= $4,942.5

8 0
1 year ago
Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, wha
Korvikt [17]

Answer:

1,030

Explanation:

Calculation for what is the exponential smoothing forecast value

Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)

Exponential smoothing forecast value = 1,000 + 0.3 x (100)

Exponential smoothing forecast value = 1,000 + 30

Exponential smoothing forecast value= 1,030

Therefore the exponential smoothing forecast value will be 1,030

5 0
2 years ago
Patrick graduated from college five years ago. he has set up an emergency fund and has been paying off his student loans. in add
mestny [16]
Given that <span>Patrick graduated from college five years ago. He has set up an emergency fund and has been paying off his student loans. In addition, he participates in the retirement plan offered by his employer. He wants to invest $75 per month in very small companies (capitalization between $50 and $300 million or less).

He should purchase micro cap stocks.

</span>M<span>icrocap refers to the stock of public companies in the United States which have a market capitalization of roughly $50 million to $300 million.</span>
7 0
1 year ago
Other questions:
  • A year ago, MC Hammer Company had inventory in Britain valued at 240,000 pounds. The exchange rate for dollars to pounds was 1£
    10·1 answer
  • A consulting firm has a predetermined overhead rate of $120 per labor hour. The Smith job required 5 hours to compete. The overh
    12·1 answer
  • A U.S. firm has sold an Italian firm €1,000,000 worth of product. In one year the U.S. firm gets paid. To hedge, the U.S. firm b
    14·2 answers
  • Cad Cream Inc, an ice cream company, has collaborated with Bite Snack Inc, a food manufacturing company, to come up with a third
    9·2 answers
  • Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, as well as direct fi
    12·2 answers
  • Polly borrowed $285 for a new floor lamp. She will make 5 monthly payments of $62 to repay the loan. How much will she pay in
    8·1 answer
  • Discussion Questions What project management tasks should Kelvin perform before his next meeting? What change management tasks s
    5·1 answer
  • HURRY PLEASE! :)
    5·1 answer
  • The combo box (form control) option in macros can be used to substitute for ___ when doing scenario analysis.
    5·1 answer
  • Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!