Emilio works in a power plant control room. Dawn works in a coal mine. What do Emilio and Dawn have in common?

ABC Manufacturing produces a product for which the monthly demand is 900 units. Production averages 100 units per day. Holding c

vekshin1

Answer:

EPQ = 1982

maximum inventory = 1090

average inventory = 545

order cycles = 44.04

total cost of managing = $2180

Explanation:

given data

monthly demand = 900

annual demand = 12 × 900 = 10800

Production averages = 100 units

Holding costs = $2.00

setup cost = $200.00

company operates= 240 days

solution

daily usage = $\frac{10800}{240}$

daily usage = 45

we find here EPQ

EPQ = $\sqrt{\frac{2*demand*setucost}{holding cost}}$ × $\sqrt{\frac{daily production}{daily production - daily use}}$ ...........1

EPQ = $\sqrt{\frac{2 * 10800 * 200}{2}}$ × $\sqrt{\frac{100}{100-45}}$

EPQ = 1982

and

maximum inventory = $\frac{Q}{daily production}$ × daily production - daily use

maximum inventory = $\frac{1982}{100}$ × (100-45)

maximum inventory = 1090

and

average inventory = $\frac{maximum inventory}{2}$

average inventory = $\frac{1090}{2}$

average inventory = 545

and

order cycles = $\frac{Q}{daily use}$

order cycles = $\frac{1982}{45}$

order cycles = 44.04

and

total cost of managing = $\frac{maximum inventory}{2}* holding cost + \frac{demand}{Q}*setup cost$

total cost of managing = $\frac{1090}{2}* 2 + \frac{10800}{1982}*200$

total cost of managing = 2179.81 = $2180

5 0

2 years ago

Depreciation Methods On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used in the fabrication of a part

crimeas [40]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The machine cost $120,000, and its estimated useful life was four years or 920,000 cuttings, after which it could sell for $5,000.

Each method has a different formula. In the straight-line depreciation, each year's depreciation expense is the same. On the other hand, double-declining balance depreciation expense declines with the years. While the units of production method, depreciation expense varies according to use.

A) Straight-line:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (120,000 - 5,000)/4= $28,750 per year

B) Double declining balance:

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= 2*(115,000/4)= 57,500

Year 2= 2*[(115,000 - 57,500)/4]= 28,750

Year 3= 2*[(57,500 - 28,750)/4]= 14,375

Year 4= 2*[(28,750 - 14,375)/4]= 7,187.5

C) Units of production:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Year 1= [(115,000)/920,000]*200,000= $25,000

Year 2= (0.125)*350,000= 43,750

Year 3= 0.125*260,000= $32,500

Year 4= 0.125*110,000= $13,750

6 0

2 years ago

A stadium was fined $186,000 by the city due to the traffic issues that were caused by a stadium's inability to handle traffic f

In-s [12.5K]

Answer:

$83000

Explanation:

Given: Stadium is fined for $186000

Other parking expense is $163000

Revenue generated by stadium in parking= $432000.

Now, calculating profit:

Profit= $Revenue - expense$

Profit= $432000-186000-163000= 432000-349000$

∴ Profit= $83000

∴ Total profit made for parking that day is $83000.

3 0

2 years ago

Read 2 more answers

John bought a waterfront lot with a setback requirement of 50 feet from the street. the lot is only 100 feet deep and drops off

LenKa [72]

He would apply for a variance. This would allow John to deviate from the current zoning laws as set by the location that he is living in. This variance would give John the ability to build his home to the dimensions required by the land, as well as still being able to meet the specifications he is wanting.

3 0

2 years ago

On January 1, 2021, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variabl

Natalija [7]

Answer:

Jan 1st, 2021 entry:

Equipment 746,168 debit

Lease Liability 723,668 credit

Cash 22,500 credit

April 1st, 2021 entry:

Interest expense 7,537 debit

Lease Liability 15,263 debit

Cash 22,800 credit

Explanation:

We will assume a 750,000 sales revenue per quarter. As this was their historical and expected value:

750,000 x 3% = 22,500 per quarter

Now, we solve for the present value of the lease payment:

$C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\$

C 22,500

time 40 (10 years x 4 quarter per year)

rate 0.01 (4% annual / 4 quarters)

$22500 \times \frac{1-(1+0.01)^{-40} }{0.01}(1+0.01) = PV\\$

PV $746,168.2419

we subtract the first payment of 22,500

lease liability reocrded in the enrty: 723.668

As lease sales were 760,000

lease payment: 760,000 x 3% = 22,800

less expected of 22,500 = 300 additional interest expense

interest expense: 723,668 x 0.01 = 7,237 + 300 = 7,537

amortization on lease liability: 22,800 -7,537 = 15,263

6 0

2 years ago