1. From the figures given below, calculate Economic Order Quantity (EOQ) and Total cost at EOQ?...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. From the figures given below, calculate Economic Order Quantity (EOQ) and Total cost at EOQ? Total consumption of material per year Buying cost per order $50 10,000 kgs Unit cost of material Carrying and storage cost 8% 2. The XR stocks carpet in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day (which is not on a Sunday). $2 per kg 3. Let's imagine a company we called XY Inc. Nile is a vegetable retailer who has the following metrics - Cost of Goods Sold (COGS) = $365 Average inventory = $10 (they have low levels of inventory in general) Sales = $1095 Accounts Receivable = $30 Accounts Payable = $30 What is cash conversion cycle? 1. From the figures given below, calculate Economic Order Quantity (EOQ) and Total cost at EOQ? Total consumption of material per year Buying cost per order $50 10,000 kgs Unit cost of material Carrying and storage cost 8% 2. The XR stocks carpet in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day (which is not on a Sunday). $2 per kg 3. Let's imagine a company we called XY Inc. Nile is a vegetable retailer who has the following metrics - Cost of Goods Sold (COGS) = $365 Average inventory = $10 (they have low levels of inventory in general) Sales = $1095 Accounts Receivable = $30 Accounts Payable = $30 What is cash conversion cycle?
Expert Answer:
Answer rating: 100% (QA)
Solution 1 Given Demand 10000 kgs Ordering Cost per Order 50 Holding Cost per Unit per Year 28 016 ... View the full answer
Related Book For
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams
Posted Date:
Students also viewed these accounting questions
-
Calculate Economic Order Quantity (EOQ) and Total Annual Cost from the following: Annual consumption 6,000 units Cost of ordering - Rs. 60, Carrying costs is Rs. 2.
-
Question: An investment manager wants to determine an optimal portfolio for a wealthy client. The fund has $2.5 million to invest, and its objective is to maximize total dollar return from both...
-
A construction company wants to determine the optimal replacement policy for the earth mover it owns. The company has a policy of not keeping an earth mover for more than five years, and has...
-
Describe what happens if you put the double quotes in the print statement of HelloWorld.java on different lines, as in this code fragment: System.out.println("Hello, World");
-
Assume that Wrigley Juice is owned by Calvin as a sole proprietorship. Explain the effect of Wrigleys results on Calvins tax return. Wrigley Juice has the following income, expense, and loss items...
-
Broome Instruments Company manufactures a control valve used in air-conditioning systems. The firm uses a standard costing system for product costing. The manufacturing overhead rate is based on a...
-
Airhead Oil Companys balance sheet includes three assets: Natural Gas, Oil, and Coal. Suppose Airhead Oil Company paid $1,900,000 cash for the right to work a mine with an estimated 200,000 tons of...
-
Wagner Manufacturing estimated its product costs and volume of production for 2012 by quarter as follows. Wagner Company sells a souvenir item at various resorts across the country. Its management...
-
Patton Dyes manufactures colorings, primarily for textiles. Information on the work in process follows: Beginning inventory, 150,000 partially complete liters. Ending inventory, 120,000 liters; units...
-
The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250...
-
How to add the even and odd in raptor flowchart between two numbers?
-
Discuss the role of law in civil ? Discuss Statute law with a suitable example. Need explanation in more than two hundred and also explain reason for the answer IN TEXT FORM Please provide correct...
-
An Australian firm has net receivables of 200,000 SGD in three-months' time as compensation for work undertaken. Current spot rate is AUD/SGD 0.9819/0.9855 Interest rates in Singapore are currently...
-
DigiCom is a new company trying to take market share away from Apple's IPodin the MP3 player market. They are offering the 8gb Lame for $50 each, and the 16gb Lame Plus for $100. Their variable costs...
-
c) Your boss believes that the correct expected return for Telestor equals 0,11. Show how you can put together a portfolio of Oljelund, H20Kraft, Telestor in a way that earns you a risk-free...
-
a. Project A costs $5,500 and will generate annual after-tax net cash inflows of $1,950 for five years. What is the payback period for this investment under the assumption that the cash inflows occur...
-
Pomegranate Inc., already known as an electronics brand (but not for mobile phones), with an existing corporate and social media online presence, is launching a new brand of mobile phones. The target...
-
In the circuit shown in Figure 4, a battery supplies a constant voltage of 40 V, the inductance is 2 H, the resistance is 10, and l(0) = 0. (a) Find l(t). (b) Find the current after 0.1s.
-
The total number of term life insurance contracts sold in Problem 13 is 199. The following pie chart shows the percentages of contracts sold by each salesperson. a. What are the problems with using a...
-
Floyd's Bumpers has distribution centers in Lafayette, Indiana: Charlotte, North Carolina; Los Angeles, California; Dallas, Texas; and Pittsburgh, Pennsylvania. Each distribution center carries all...
-
Refer to the time series data in Problem 1. Using the average of all the historical data as a forecast for the next period, compute the following measures of forecast accuracy: a. Mean absolute error...
-
Which of the following definitions fits amortization? a. Allocation of the asset's market value to expense over its useful life b. Allocation of the asset's cost to expense over its useful life c....
-
Amortization of a natural resource is computed in the same manner as which amortization method? a. Straight-line b. UOP c. Double-declining-balance d. CCA
-
A company paid \(\$ 900,000\) for a building and was amortizing it by the straight-line method over a 40 -year life, with estimated residual value of \(\$ 60,000\). After 10 years it became evident...
Study smarter with the SolutionInn App