Sandhill Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sandhill Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $27.00 300-749 cases $25.53 750-1,499 cases 1,500 + cases $24.44 $23.15 The economic order quantity is 173 cases and the annual usage is 41,901 cases. The ordering cost (K) is $5 per order and the carrying cost of inventory (H) is $14 per unit. Determine the most cost-effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) Most cost effective order quantity Total Cost Special Order Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted a special order for a number of units, the production of which would use part of its unused capacity. The special order sales price is 50% of the normal price, and the profit margin is only 60% of the regular dollar profit. What, apparently, is Note: Round answers to two decimal places, when applicable. a. Northern's profit per unit on the special order? $ b. Northern's variable cost per unit? $ c. Northern's average fixed cost per unit on regular sales? $ Check Differential Analysis In each of four independent cases, the amount of differential revenue or differential cost is as follows (parentheses indicate decreases): 2 3 Increases (decreases) in: Revenue Costs 1 4 $36,000 $0 ? ? ?? $(20,000) $0 For each case, determine the missing amount that would be necessary for the net differential amount to be: a. $22,000 Use a negative signs with answers to reflect decreases. Increases (decreases) in: 1 2 3 4 Revenue Costs $36,000 $0 $ $ $ $(20,000) $0 b. ($9,000) Use a negative signs with answers to reflect decreases. Increases (decreases) in: 1 2 3 4 Revenue Costs Check $ $36,000 $ $0 $ $(20,000) $ $0 Sandhill Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $27.00 300-749 cases $25.53 750-1,499 cases 1,500 + cases $24.44 $23.15 The economic order quantity is 173 cases and the annual usage is 41,901 cases. The ordering cost (K) is $5 per order and the carrying cost of inventory (H) is $14 per unit. Determine the most cost-effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) Most cost effective order quantity Total Cost Special Order Northern Company regularly sells its only product for $34 per unit and has a 25% profit on each sale. The company has accepted a special order for a number of units, the production of which would use part of its unused capacity. The special order sales price is 50% of the normal price, and the profit margin is only 60% of the regular dollar profit. What, apparently, is Note: Round answers to two decimal places, when applicable. a. Northern's profit per unit on the special order? $ b. Northern's variable cost per unit? $ c. Northern's average fixed cost per unit on regular sales? $ Check Differential Analysis In each of four independent cases, the amount of differential revenue or differential cost is as follows (parentheses indicate decreases): 2 3 Increases (decreases) in: Revenue Costs 1 4 $36,000 $0 ? ? ?? $(20,000) $0 For each case, determine the missing amount that would be necessary for the net differential amount to be: a. $22,000 Use a negative signs with answers to reflect decreases. Increases (decreases) in: 1 2 3 4 Revenue Costs $36,000 $0 $ $ $ $(20,000) $0 b. ($9,000) Use a negative signs with answers to reflect decreases. Increases (decreases) in: 1 2 3 4 Revenue Costs Check $ $36,000 $ $0 $ $(20,000) $ $0
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What were the most common problems that occurred in your simulations and how did you respond to fix them? What are some of the relationships you see between the four supply chain objects (products,...
-
Term in years: Rate: 2 3 4 5 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What...
-
Theodora Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity..........................Price per Case 1299 cases..........................$25.00 300749...
-
The advantages of the computerized conversion process model " What is the EOQ model? (For self-study and research) What is JIT? (Self study and research) A firm expects to sell 2000 units of its...
-
The primary coil of an ideal transformer has 720 turns, and the secondary coil has 180 turns. If the primary coil carries 15 A at a voltage of 120 V, what are (a) The voltage and (b) The output...
-
An Italian ski manufacturer has determined that the fixed cost of making slalom skis is 1 million and the variable cost is 100 per pair of skis. During normal operations the firm plans to make 20,000...
-
Access the fiscal year 2017 annual report of General Mills, Inc., available on this book's Website. Required a. What was the amount of total Accounts Receivables and the Allowance for Doubtful...
-
Mathias Company manufactures a number of specialized machine parts. Part B unkka-22 uses $35 of direct materials and $15 of direct labor per unit. Mathias?? estimated manufacturing overhead is as...
-
Question 28 A website that rents movies online recorded the age and the number of movies rented during the past month for some of their customers. The data are shown below for a random sample of 24...
-
Write a paper about the difficulties that students face in learning English because of the education system in Saudi Arabia.
-
Is it possible to find the maximum amplitude of a damped forced vibration for any value of \(r\) by equating the energy dissipated by damping to the work done by the external force?
-
What is self-excited vibration?
-
Why is viscous damping used in most cases rather than other types of damping?
-
If the characteristic roots have a zero imaginary part, the response of the system will be: a. oscillatory b. nonoscillatory c. steady
-
What is the difference between the peak amplitude and the resonant amplitude?
-
Caswell Enterprise had the following end-of-year stock prices over the last five years and paid no cash dividends: Time Caswell $ 1 10 2 15 3 12 4 9 5 10 a. Calculate the annual rates of return for...
-
Software Solution is family-owned business that has been in operation for more than 15 year. The board of directors is comprised of mainly family members, plus a few professionals such as an...
-
Dive In Company was started several years ago by two diving instructors. The companys comparative balance sheets and income statement are presented below, along with additional information....
-
Refer to the information in PB12-2. Required: Prepare the cash flows from operating activities section of the 2010 statement of cash flows using the direct method. Data from PB12-2 The income...
-
In 2009, Big W Company reported earnings per share of \($2.50\) when its stock was selling for \($50.00.\) In 2010, its earnings increased by 10 percent. If all other relationships remain constant,...
Study smarter with the SolutionInn App