New England Co. predicts that it will use 360,000 gallons of material during the year. The material
Question:
New England Co. predicts that it will use 360,000 gallons of material during the year. The material is expected to cost $5 per gallon. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon.
a. Determine the most economical order quantity by using the EOQ formula.
b. Determine the total cost of ordering and carrying at the EOQ point.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 91% (12 reviews)
a EOQ square root of 2CNK where C 72 N 360000 ...View the full answer
Answered By
Branice Buyengo Ajevi
I have been teaching for the last 5 years which has strengthened my interaction with students of different level.
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Cost Accounting questions
-
Let the process (Xt), t 0, solve the SDE dXt =-Xidt + dB, Xo E R. (a) Show that the process Y = et X, has independent Gaussian increments, and give the distribution of the increments over the time...
-
A new manufacturing machine is expected to cost $286,000, have an eight-year life, and a $30,000 salvage value . The machine will yield an annual incremental after-tax income of $35,000 after...
-
Patriot Company predicts that it will use 360,000 gallons of material during the year. The material is expected to cost $5 per gallon. Patriot anticipates that it will cost $72 to place each order....
-
Write a memo to an employee whose work and behavior have been unsatisfactory. (You are the department manager.) Try to motivate the employee to improve his performance. Be brief, direct, honestand as...
-
y(t) = t2 sin(t) is a solution of dy/dt = 2t sin(t) + t2 cos(t). Show that the above are solutions of the given differential equation.
-
Analogies exist between rotational and translational physical quantities. Identify the rotational term analogous to each of the following: acceleration, force, mass, work, translational kinetic...
-
The Student Winner was Ulf Aslak Jensen, for the video "How People Gather: An Interactive Visualization Approach." Watch this video, and answer the following questions: (a) What data are this video...
-
As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions: a. Debit Equipment and credit Cash. b....
-
A project has an initial outlay of $2,585. It has a single payoff at the end of year 2 of $9,017. What is the profitability index (PI) of the project, if the company's cost of capital is 14.00...
-
The percent of college students marijuana use for a sample of 95,761 students is shown in the pie chart. Find the probability of each event. (a) Randomly selecting a student who never used marijuana....
-
Musketeer Co. expects daily usage of 500 lb of material X, an anticipated lead time of seven days, and a desired safety stock of 2,500 lb. a. Determine the order point. b. Determine the number of...
-
SoCal Co. predicts that it will use 225,000 gallons of material during the year. The material is expected to cost $10 per gallon. It anticipates that it will cost $40 to place each order. The annual...
-
The table lists the approximate values V of a mid-sized sedan for the years 2010 through 2016. The variable t represents the time (in years), with t = 10 corresponding to 2010. (a) Use the regression...
-
After a trip to Bordeaux France you are considering opening a restaurant based on Restaurant L'Entrecote. You will offer a fixed menu of salad, steak and French fries. Your innovation is that you...
-
Roger Johnson purchased a 50,000 ordinary life policy and an ADB for 50% of the value of the policy. In addition, he purchased a 5-year, 50,000 term policy. He died in an accident 3 years later. a....
-
Tyler Industries operates a mineral deposit with an estimated 1,500,000 tons of available ore. The mineral deposit was purchased for $1,500,000, and no salvage value is expected. A total of 200,000...
-
Chevron ( CVX ) is expected to be $ 1 0 7 , and the expected dividend at the end of next year is $ 0 . 8 1 . If the company s required rate of return on equity is 1 2 % , calculate the value of CVX...
-
Using the For.. loop, Write the program to ask the user for 7 deposits. As the user enters a deposit amount, update the balance using accumulation concept. Also, keep a count ofthe number of deposits...
-
Michael Simpson is one of the most outstanding managers in the management consulting division of Avery McNeil and Co. (Avery McNeil is primarily an accounting firm, but it also has two divisions...
-
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
-
Complete the sentences below. a. The purpose of outputs is to present the most_ to system users. Because they are - part of an information system, system users and owners often base the of an...
-
What is the difference between the term unit cost as commonly used in a process cost system and the term job cost as commonly used in a job order system of cost accounting?
-
How do the two cost accounting systems differ in accounting for each of the following items? a. materials b. labor c. factory overhead
-
What is the primary objective in accumulating costs by departments?
-
A project that is expected to generate annual after-tax cash flows of $2,200 for each of the next 20 years. The project's cost of capital is 8.5 percent and it has an IRR of 9.058 percent. What is...
-
Gabbie has to decide between the following two choices: Option 1: Get $320 with probability 35.97%, and $84.15 with the complement probability. Option 2: Get $94.95 with 100% probability. Her utility...
-
Why are unpaid accruals a "temporary" source of cash? Please give some details and examples.
Study smarter with the SolutionInn App