Redan Manufacturing uses 1,700 switch assemblies per week and then reorders another 1,700. If the relevant carrying
Question:
Redan Manufacturing uses 1,700 switch assemblies per week and then reorders another 1,700. If the relevant carrying cost per switch assembly is $7, and the fixed order cost is $725, is Redan’s inventory policy optimal? Why or why not?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (14 reviews)
The carrying costs are the average inventory times the cost of carrying an individual unit so ...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Corporate Finance questions
-
Redan Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. if the relevant carrying cost per switch assembly is $9 and the fixed order cost is $1,700, is Redan's...
-
Fhloston Manufacturing uses 1,860 switch assemblies per week and then reorders another 1,860. If the relevant carrying cost per switch assembly is $6.25, and the fixed order cost is $730, is the...
-
Provenza Manufacturing uses 3,400 switch assemblies per week and then reorders another 3,400. If the relevant carrying cost per switch assembly is $7.45, and the fixed order cost is $1,100, is the...
-
Should U.S. national forests become privatized (sold to private owners)? Why or why not?
-
A chemical company produces amongst its product range two industrial cleaning fluids, A and B. These products are manufactured jointly. Total sales are expected to be restricted because home trade...
-
Use Theorem 15.15.c) to show that the stochastic integrals for the right and left continuous simple processes \(f(t, \omega):=\sum_{j=1}^{n} \phi_{j-1}(\omega) \mathbb{1}_{\left[s_{j-1}, s_{j}...
-
Consider the gasoline mileage performance data in Table B.3. a. Use the all-possible-regressions approach to find an appropriate regression model. b. Use stepwise regression to specify a subset...
-
Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an...
-
at the beginning of the year addisons companys assests are 1 5 8 0 0 0 and its equity is 1 1 8 5 0 0 . during the year assets increase 8 0 0 0 0 and liabilities increase 4 8 0 0 0 . what is the...
-
Ms. Mist is employed as an internal auditor by Universal Imports Limited (UIL), a Canadian-controlled private corporation. To drive to UILs locations, as required in her employment, UIL provides her...
-
Lealos, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Lealos should proceed or not....
-
The Trektronics store begins each week with 750 phasers in stock. This stock is depleted each week and reordered. If the carrying cost per phaser is $65 per year and the fixed order cost is $395,...
-
Seville Products Ltd. reported the following at September 30, 2017: Required 1. Record the retirement of one-half of the bonds on October 1, 2017, at the call price of 103.00. 2. Record the...
-
ITB Plc. has recently issued three alternative coupon bonds with different times to maturity. a. Calculate the market price of each bond, assuming a yield to maturity of 8 percent (face value 5...
-
The data shared below is extracted from Financial Times website on the betas of four companies listed in the FTSE 100 market index in the UK namely Vodafone, Tesco, British Petroleum, and British...
-
CoffeeCarts has a cost of equity of 15.3%, has an effective cost of debt of 3.6%, and is financed 70% with equity and 30% with debt. What is this firms WACC?
-
ECB Co. has 1.45 million shares outstanding selling at $25 per share. It plans to repurchase 102,000 shares at the market price. What will its market capitalization be after the repurchase? What will...
-
You have invested in GreenFrame, Inc. The CEO owns 4% of GreenFrame and is considering an acquisition. If the acquisition destroys $58 million of GreenFrames value, but the present value of the CEOs...
-
Redo Problem 6.29 using Aspen Plus Problem 6.29 Nitrogen is to be isothermally compressed at 0C from 1 bar to 100 bar. Compute the work required for this compression; the change in internal energy,...
-
1. Use these cost, revenue, and probability estimates along with the decision tree to identify the best decision strategy for Trendy's Pies. 2. Suppose that Trendy is concerned about her probability...
-
What is accounts payable days outstanding?
-
Consider four different stocks, all of which have a required return of 14 percent and a most recent dividend of $3.50 per share. Stocks W, X, and Y are expected to maintain constant growth rates in...
-
Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current...
-
Storico Co. just paid a dividend of $3.40 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until...
-
The community nursing service team provides nursing care to patients in the community, Discuss?
-
Why are angiosperms so diverse (when compared with non-flowering lineages of plants)? How expensive flowers are to produce for the plant (they cost lots of ATP to make); what benefit do they provide...
-
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct labor...
Study smarter with the SolutionInn App