A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag. Lead time is one week. a) Calculate the economic order quantity. b) Calculate the total annual costs. c) Determine the recrder point.

A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag. Lead time is one week. a) Calculate the economic order quantity. b) Calculate the total annual costs. c) Determine the recrder point.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 2,100 units for $50 each to earn a $30 contribution margin per unit. Janice McCall, president, expects the year’s total market to be 35,000 units. For the year just completed, the local college won the national hockey championship, and as a result, the total actual market was 140,000 units. C. W. McCall sold 5,600 units and calculates sales variances using contribution margin. What is the firm’s sales volume variance?
Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost Annual holding cost Daily production Annual usage Lead time Safety stock $30 $120 per subassembly 25 subassemblies 4,000 (50 weeks x 5 days each x daily usage of 16 subassemblies) 12 days 4 days' production
A local toolmaker makes the best hammers on the market. The head of the hammer costs $15.56 and the handle costs $4.24. It takes 1.4 minutes to assemble the hammer and the hourly cost is $91 for assembly time. The company has fixed operating costs of $26348 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $8619. How many hammers must they sell? Round to the nearest whole number Answer:
Calla Company produces skateboards that sell for $50 per unit. The company currently has the capacity to produce 90,000 skateboards per year but is selling 80,000 skateboards per year. Annual costs for 80,000 skateboards follow.
Pauley Company provides home health care. Pauley charges $85/hour for professional care. Variable costs are $29/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the break-even point in hours? (Round to the nearest whole hour.)
American Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,800), depreciation on office furniture ($1,800), utilities ($2,500), special telephone lines ($1,500), a connection with an online brokerage service ($2,400), and the salary of a financial planner ($4,000). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue). Read the requirements. Requirement 1. Use the contribution margin ratio approach to compute American's breakeven revenue in dollars. If the average trade leads to $750 in revenue for American, how many trades must be made to break even? Begin by showing the formula and then entering the amounts to calculate the required sales dollars for American to break even. (Abbreviation used: CM = contribution margin.) Fixed costs Target profit ) + CM ratio =…
Cullumber provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation (straight-line) Advertising Insurance $1,400 per month $300 per month $3,130 per month Weed and feed materials $14 per lawn Direct labor Fuel $12 per lawn $2 per lawn Cullumber charges $70 per treatment for the average single-family lawn. For the month ended July 31, 2027, the company had total sales of $8,400. (a) Prepare a CVP income statement for the month ended July 31, 2027. CULLUMBER $ Total CVP Income Statement $ $ Per Unit Percent of Sales
This month your vendor invoiced $31,500 in testing charges for your production run. The unit cost for testing is twice as much for each of the first 400 units per month as compared to each unit over 400. If we shipped 500 units to the vendor this month, find: (a) Average cost per unit; (b) Cost per unit below the price break point; (c) Marginal cost for the 650th unit. The Country Fields Retirement Community charges $6000/month for a single senior citizen to reside in an efficiency apartment with assisted living care. The facility has operating expenses of $600,000 per month. Staffing levels are dependent on the number of residents.
C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 1,400 units for $35 each to earn a $15 contribution margin per unit. Janice McCall, president, expects the year’s total market to be 35,000 units. For the year just completed, the local college won the national hockey championship, and as a result, the total actual market was 150,000 units. C. W. McCall sold 3,000 units and calculates sales variances using contribution margin. What is the firm’s sales volume variance?
Cop
A local toolmaker makes the best hammers on the market. The head of the hammer costs $19.75 and the handle costs $3.52. It takes 1.4 minutes to assemble the hammer and the hourly cost is $73 for assembly time. The company has fixed operating costs of $27746 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $14085. How many hammers must they sell? Round to the nearest whole number Answer:
(b) Determine the company's break-even point in (1) number of lawns serviced per month and (2) sales dollars. (1) Break-even point in lawns (2) Break-even point in dollars $