A small copy center uses 4 590-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of 4 boxes per week and a standard deviation of .50 boxes per week. 2 weeks are required to fill an order for letterhead stationery. Ordering cost is $5, and annual holding cost is 37 cents per box. Determine the economic order quantity, assuming a 52-week year.
Answers
Answer: The Economic order quantity(EOQ) is 74 boxes.
Explanation:
Given weekly demand (d)= 4 boxes
Annual demand (D) = 452 = 208 boxes
Ordering cost S = $5
Holding cost H = $0.347
Standard deviation () = 0.50
Lead time (L) = 2 weeks
∴ Economic order quantity (EOQ) Q is as follow :
Q =
Q =
Q = 77.42 or 74
The Economic order quantity(EOQ) is 74 boxes.
Related Questions
For each of the following scenarios, classify the type of spending (C,I,G,Xn), describe its impact on gross domestic product (increase, decrease, not impacted), and explain. A. A new airplane purchased by United Parcel Service.B. The tuition you pay during your first year of college.C. The social security check your grandmother receives.D. A new purchase of 50,000 shares of Time/Warner stock.E. A new pair of tennis shoes made in China and purchased by an American shoe store.
An increase in savings by consumers is seen as a(n):_________. a. decrease in investment spending in the economy increase in government spending in the economy. b. decrease in exports in the economy. c. increase in imports in the economy. d. leakage in spending in the economy.
Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going. This type of interview is called:_____.
Based on a cost of $200,000 in year 0, and benefits of $600,000 for years 1 through 4, use the financial benefits calculator spreadsheet to calculate the payback period of the project. What is the payback period of the project?
Answers
Answer:
1. Cost of goods manufactured =437,000.00
2. cost per hockey stick= $230
Explanation:
Total product cost: The sum of direct material cost, direct labour cost and overhead.
Direct material cost is the costs of all specific materials required to product a product. For example, cost of the flour, sugar used to produce cakes. Where there exist inventory of materials at the beginning and end of a period, the cost of material used is calculated as follows:
Cost of material used is calculated as = Opening stock + Purchases - closing stock
Direct labour cost : the cost of the man hours used directly for the purpose of production. The cost of hours paid to the tailors for making garments in a clothing factory . It is arrived as the active hours used for production × wage rate per hour.
Overhead : Sum of the indirect costs. These include expenditutures on materials , labour and expenses incurred not specifically for a particular product. Example are cost of toiletries used in a bakery, salaries of the security guard , rent of the bakery, e.t.c.
Opening working in progress represents accumulated production cost incurred on goods for which production commenced in a prior period but was not concluded. These items will need to be continued in the following period, hence further production costs would be incurred.
Closing working in progress this represents the cost production work for which work is yet to be completed as the end of the current period.
Working in Progress is adjusted on the production cost in the current period as follows to determine the production cost of the completed units as thus:
Cost of the goods manufactured =
opening WIP + production cost incurred in the period - closing W.I.P.
So we are not set to apply these explanation
Direct materials (132000+48,000-45,000) 135,000.00
Direct labour 113,000.00
Manufacturing Overhead 187,000.00
Add opening W.I.P 65,000.00
less closing W.I.P (63,000.00)
Cost of goods manufactured 437,000.00
Cost of one hockey stick = cost of good manufactured / Hocky sticks produced
=$ 437,000/1900 sticks
Cost per hockey stick= $230
Final answer:
The cost of goods manufactured for Slapshot Company in June is $429,000. The cost of one hockey stick, given that 1,900 hockey sticks were produced in June, is approximately $225.79.
Explanation:
To determine the cost of goods manufactured, we need to add purchases, direct labor costs, and manufacturing overheads then subtract the change in materials inventory. Here, the purchases are $132,000, direct labor cost of $113,000, and manufacturing overhead is $187,000. The materials inventory decreased by $3,000 ($48,000 - $45,000). So, the total cost of goods manufactured is $429,000 ($132,000+$113,000+$187,000-$3,000).
To find the cost of one hockey stick, we just need to divide the cost of goods manufactured by the number of items produced. Therefore, if 1,900 hockey sticks were completed during June, each hockey stick costs $225.79 ($429,000 / 1,900).
Learn more about Cost Accounting here:
#SPJ6
Answers
Answer:
So we can offer for the house $180119.95
Explanation:
Monthly income =$4000
Monthly mortgage payment allowed (P)= 25% of 4000= $1000
Interest rate per month (i)= 0.5%
Number of months in total (n)= 30*12= 360
Maximum loan affordable = P*(1-(1/(1+i)^n))/i
=1000*(1-(1/(1+0.5%)^360))/0.5%
=$166791.61
Closing cost is 4% of loan value = 166791.61*4% =$6671.66
Balance Amount left for down payment = 20000-6671.66
=$13328.34
It means we can pay $6671.66 for closing cost of Loan and $13328.34 for down payment.
Cost of house paid maximum = Down payment + Affordable loan
=13328.34+166791.61
=$180119.95
So we can offer for the house $180119.95
Answers
Answer:
Net Income = $ 1.05 million; you can calculate the amount using the profit margin which will be the 7% from the sales.
ROE = 19.8%, the formula is Net Income/Owners Equity. To obtain the amount for Owners Equity you can use the information provided using the Assets and the Total Debt, the difference will be the amount for Owners Equity $ 5.3million.
ROA = 11.7% , the formula is Net Income/Assets.
Answers
Answer:
The correct option is D (all of the above)
Explanation:
Opportunity cost is the rate of return which can be earned from the next best alternative investment opportunity with similar risk profile. Also the meaning of opportunity cost doesnt change only the factors do.
This concept is not as simple as it may first appear. The person making the decision must estimate the variability of returns on the alternative investments through the period during which the cash is expected to be used.
Answers
Answer:
Explanation:
Once out of Ginny sight, Alex faces a dilemma: Work very hard (put in all effort) or shirk (put in little effort). If he works hard, he'll sell enough water to generate $90 in earnings (not including his personal cost). If he shirks, he'll only generate $50 in earnings. After the end of the work, he'll split his earnings with Ginny and also get half of what she earns at her stand. In terms of Eric's total utility, it is worse for him to work hard. Close A If Alex works hard, Alex and Sunita together earn $270 ($180 + $90), of which Eric keeps $120. However, he loses $20 worth of utility by working hard. Therefore his net earnings is $100. If he shirks, Eric and Ginny together earn $270 ($200+ $70), of which Eric will keeps $120, while his personal cost is zero. Therefore Alex, individually, is better off when he shirks. A more better way of finding the solution to the problem is to note that from Eric's view, the amount of money he gets from Ginny's sales from the stand does not rely on his own sales.
Answers
Answer:
$168,000
Explanation:
Given
Dartmouth Corporation
Contribution format Income Statement
For the month of June.
Sales (2,800 units) $ 263,200
Variable costs 106,400
Contribution margin 156,800
Fixed costs 135,000
Operating profit $ 21,800
We calculated the sales revenue and the variable costs by dividing the total costs with the number of units and multiplying it with 3000 units to get contribution margin for 3000 units.
Calculated.
Dartmouth Corporation
Contribution format Income Statement
For the month of June.
Sales ( 3000 units) ($ 263,200 / 2800) * 3000= $ 282000
Variable costs (106,400 / 2800) * 3000= $ 114000
Contribution margin $ 168,000
Fixed costs 135,000
Operating profit $ 33,000