Answer:
A. 200 units per order
Explanation:
To solve this you have to use the <em>economic order quantity</em> formula:
Where:
Demand = 4,000
S= supply cost = ordering cost = 20
H= holding cost = 4
Economic Order Quantity = 200
<em><u>How to Remember:</u></em>
Demand per year and order cost goes in the dividend.
Holding cost goes in the divisor.
Answer:
The best batch size for this item is 400 units.
Explanation:
As given Annual demand (D)=1000 units, Carrying cost (H)=$10 per unit, set up cost (S)=$400.
As per the production order model formula will be:
\sqrt{2}D*S/H[1-d/p]} .
d for week=1000/50
=20. p per day
=40 units/7 days.
=5.71
d per day = 20/7
=2.85
Therefore on applying all these:\sqrt{}2*1000*400/10[1-2.85/5.7.
on solving this we will get 400 Units
Therefore, The best batch size for this item is 400 units.
Answer:
The correct answer is letter "A" and "C": Focused on the concerns of the audience; Purposeful.
Explanation:
Business writing is necessary when reports of the financial situation of the company are necessary to be shared. These types of writings are characterized for being <em>objective </em>and <em>straight-to-the-point</em>. Besides, they must be <em>purposeful </em>-which implies there is a major reason why they are being written, and <em>audience orientated</em> -cover the information the audience is requesting to know.
Answer:
d. $197,418
Explanation:
Profitability index for this project = Present value of cash inflows / Present value of cash inflows
Profitability index for this project = 2.531*$78000 / $195000
Profitability index for this project = $197,418 / $195,000
Profitability index for this project = 1.0124
So, the net present value of this project is $197,418
Answer:
$3.5 million
Explanation:
Data given in the question
Book value of the division assets = $33.50 million
Fair value of the division assets = $30 million
The sum of estimated future cash flows generated = $38 million
So, by considering the above information, the amount of impairment loss is
= Book value of the division assets - fair value of the division asset
= $33.5 million - $30 million
= $3.5 million
Since the fair value is less than the book value so the difference should be recorded as an impairment loss
