Why might you want to use a blog instead of an email?
2 answers:
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Answer:
The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero
Break Even sales for Company wide = $378,000
Break Even Value for Chicago is $111,429
And Break Even Value for Minneapolis is $120,000
The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.
Explanation:
Answer:
(1) 2,28 units
(ii) 1,414 units
(iii) Minimum stock is less than EOQ.
Explanation:
(1) Units Ordered each time
where,
A = Annual Requirement =40,000 Units
O = Ordering Cost = $200 Per unit
Minimum Stock for lead time:
= (40,000 Units × 10) ÷ 365
= 1096 (Approximately)
C=Annual Carrying cost per unit = $40 × 10% × 1/2
= 2
= 2828 Units
(2) Average Inventory = EOQ ÷ 2
= 2828 Units ÷ 2
= 1,414 Units
(3) If the Lead time Increase 10 to 15 days:
Minimum Stock Need to be Maintained:
= Avg Daily Demand × Lead time
= (40,000 Units ÷ 365) × 15
= 1,644 Units
Minimum Stock is Less the EOQ , then Increasing Lead time to 15 Days Does not Have effect on EOQ.