Discount-Mart (see Problem 16.8), as part of its new Lean program, has signed a long-term contract with Specialty Lighting and w
ill place orders electronically for its halogen lamps. Ordering costs will drop to $.50 per order, but Discount Mart also reassessed its carrying costs and raised them to $20 per lamp.
a) What is the new economic order quantity?
b) How many orders will now be placed?
c) What is the total annual cost of managing the inventory with this policy?
a) What is the new economic order quantity?
b) How many orders will now be placed?
c) What is the total annual cost of managing the inventory with this policy?
1 answer:
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Answer:
correct option is c.4%
Explanation:
given data
maturity value = $1,000
nominal rate of return r = 10 percent = 5 % semi annually = 0.05
mature time t = 5 years = 10 semi annually
current market value = $768
solution
we apply here present value formula that is
present value = coupon rate × maturity value × +
..............1
put here value and we get
$768 = coupon rate × $1000 × ×
solve it we get
coupon rate = 1.99549 % Semi-annual
so here annual coupon interest rate is = 2 × 1.99549 %
annual coupon interest rate is 3.99 = 4%
so correct option is c.4%
Answer:
Explanation:
A journal entry is an accounting record of the business day to day activities in the accounting books of that particular business. An appropriately recorded journal entry comprise of the amounts to be debited and credited, correct date, the description of the transaction and a distinctive reference number.
The solution diagram to the question can be seen in the image below
