Answer:
Order size = 50 cars
The number of orders=25
Explanation:
<em>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. </em>
It is computed using the formulae below
EOQ = √ (2× Co× D)/Ch
Co- Ordering cost, Ch- Carrying cost - D- Annual demand
EOQ= √2× 1000× 1250/1000= 50
Number of cars to be ordered per time, i.e optimal order size= 50 cars
Order size = 50 cars
b)
The number of times orders should be placed per year would be calculated as follows:
The number of orders = Annual demand/ order size
The number of orders= 1250/50 = 25
The number of orders=25
Answer:
Fixed Cost = $24,000 Variable cost = $5
Explanation:
You have to use the High-Low method
From the table you got, you pick the higher and the lowest unit sold
and calculate the diference between them:
![\left[\begin{array}{ccc}&$Units&$Shipping Expense\\$High&44,400&246,000\\$Low&30,000&174,000\\$Diference&14,400&72,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D%26%24Units%26%24Shipping%20Expense%5C%5C%24High%2644%2C400%26246%2C000%5C%5C%24Low%2630%2C000%26174%2C000%5C%5C%24Diference%2614%2C400%2672%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Now 14,400 Units generates a cost of 72,000 Dividing we get the variable component
Then we calculate for the fixed cost:
Fixed Cost = 24,000
Answer:
$4,400,000
Explanation:
Cash Pledged $2,000,000
Treasury bill due in one month $2,000,000
Cash in checking account $400,000
Cash and Cash Equivalents $4,400,000
Please note that treasury bill due after 90 days or maturing after 90 days are not considered cash equivalents.
Answer:
Total material price variance= $380 favorable
Explanation:
Giving the following information:
Material A:
Purchase= 1,000 units
Purchase price= $2.1
Standard price= $2
Material B:
Purchase= 2,400 units
Purchase price= $2.8
Standard price= $3
<u>To calculate the total material price variance, we need to use the following formula on each material:</u>
<u></u>
Direct material price variance= (standard price - actual price)*actual quantity
<u>Material A:</u>
Direct material price variance= (2 -2.1)*1,000
Direct material price variance= $100 unfavorable
<u>Material B:</u>
Direct material price variance= (3 - 2.8)*2,400
Direct material price variance= $480 favorable
Total material price variance= -100 + 480
Total material price variance= $380 favorable
Answer:
$9
Explanation:
Calculation for how much the common shares of FYZ are trading
First step is to find the conversion ratio
Using this formula
Conversion ratio =Market price of the convertible+Conversion price)/Conversion price
Let plug in the formula
Conversion ratio=$70/$10
Conversion ratio=7
Second step is to calculate for the Parity price of the common stock
Using this formula
Parity price=Market price of the convertible / conversion ratio
Let plug in the formula
Parity price=$70/7
Parity price=$10
Last step is to calculate how much the common shares of FYZ are trading
Using this formula
Common shares =Parity price-Common stock trading point
Let plug in the formula
Common shares =$10-1
Common shares=$9
Therefore the common shares of FYZ are trading at $9
