A manufacturer has a production facilitythat requires 17,544 units of componentJY21 per year. Following a long-termcontract, the manufacturer purchasescomponent JY21 from a supplier with alead time of 5 days. The unit purchasecost is $14.4 per unit. The cost to placeand process an order from the supplier is$181 per order. The unit inventorycarrying cost per year is 15.2 percent ofthe unit purchase cost. The manufactureroperates 250 days a year. Assume EOQmodel is appropriate. If the manufactureruses a constant order quantity of 1,017units per order, what is the number oforders per year?Use at least 4 decimal places.

Given information, Annual demand(D) =15,544 units Ordering costs(S)=$181 Carrying cost(H) =15.2 % of…

Answered: A manufacturer has a production…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Homestead Jeans Co. has an annual plant capacity of 67,000 units, and current production is 45,700 units. Monthly fixed costs are $54,400, and variable costs are $31 per unit. The present selling price is $40 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 19,600 units of the product at $34 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. Required: A. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is…
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