Problem 11-14 (Algo)Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An Americandistributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks toarrive.Charlie's Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 12 pounds. Charlie's prides itselfon offering only the best-quality ingredients and a high level of service, so it wants to ensure a 90 percent probability of not stockingout on pepperoni.Assume that the sales representative just walked in the door and there are currently 450 pounds of pepperoni in the walk-in cooler.How many pounds of pepperoni would you order?Note: Use Excel's NORM.S.INV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimalplaces and final answer to the nearest whole number.Amount of pepperoni ordered

Step 1: Calculate Demand During Lead TimeFirst, we calculate the expected demand during the 3-week…

Answered: Problem 11-14 (Algo) Charlie's Pizza…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Q5 ZED Company supplies plastic crockery to fast food restaurants in metropolitan city. One of its products is a special bowl, disposable after initial use, for serving soups to its customers. Bowls are sold in pack 10 pieces at a price of Rs. 50 per pack. The demand for plastic bowl has been forecasted at a fairly steady rate of 40,000 packs every year. The company purchases the bowl direct from manufacturer at Rs. 40 per pack within a three days lead time. The ordering and related cost is Rs. 8 per order. The storage cost is 10% per cent per annum of average inventory investment. Required: (i) Calculate Economic Order Quantity. (ii) Calculate number of orders needed every year. (iii) Calculate the total cost of ordering and storage bowls for the year. (iv) Determine when should the next order to be placed. (Assuming that the company does maintain a safety stock and that the present inventory level is 333 packs with a year of 360 working days.
chapter 4 14. The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,200 total list price. Delivery typically requires five weeks, and freight averages 2.5% of total billed cost. Trade discounts on the merchandise are 40% and 10%; terms are 2/10, n/30. A wholesaler located in the retailer's area stocks many of the same stuffed animals. he does not require a minimum order and will deliver at no charge in the area if the order has a total billed cost of at least $500. The manufacturer and wholesaler base cost on the same list price; however the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15, n/30. What is the difference in the total net cost (including freight) of merchandise with a total list price of $1,200 from these two vendors? (Present your answer with a comma separator, dollar-sign, and rounded to the penny (i.e. $1,234.56).)
Breadmaster produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.00 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months: July $1540 Loaves August $1820 Loaves Sep. $1660 Loaves Oct. $1460 Loaves The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 154 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter. Begin the direct materials budget by determining the total quantity needed, then complete the budget. (Enter the pounds per unit as a decimal to two places. Round your calculations to the nearest whole number.)
Question 6. Juicy Ltd produces and sells Fruit Juices. The company provides the following estimated sales for the next six months: Month January February March April May June Unit Sales: 100,000 110,000 120,000 110,000 130,000 120,000 The company's policy is to keep ending inventory of finished goods that is equal to 20% of the unit sales for the next month. Three kilograms of direct materials are required for each bottle of finished goods produced. Each kilogram of direct materials costs $6. Ending inventory levels for materials are equal to 20% of the production needs for the next month. Sales price per bottle is $60. Required (show your workings and round it to the nearest two decimal places): (a) Prepare sales budgets in units and dollars for February and March Prepare production budgets in units for February and March (b) (d) Prepare direct materials purchases budgets in kilograms and dollars for February ANSWER 6: PLACE YOUR ANSWER HERE (PRESS ENTER TO CREATE MORE SPACE) (5…
What is the minimum selling price The Walls candy company should accept for the order? Explain why.
Ronald’s Pizza produces and sells the secret recipe pizzas. Each pizza sells for RM20.00. During December, Ronald’s sold 25,000 pizzas (the average amount sold each month). The restaurant employs cooks, servers and one supervisor (the owner, Black). All cooks and servers are part time employees. Ronald’s maintain a pool of part time employees so that the number of employees scheduled can be adjusted to the changes in demand. Demand varies on a weekly as well as a monthly basis. A Janitor is hired to clean the building on a weekly basis. The building is leased from a local real estate company. The building has no seating capabilities. All orders are filled on a drive-through basis. The supervisor schedules work, opens the building, counts the cash, advertises, and responsible for hiring and firing. The following costs were incurred during December. Cost Amount Cost Amount Flour 2,500 Utilities 1,500 Meat 950 Depreciation: Seafood 500 Cooking…
None
2.
Setting sales prices The Sweet Treats Company manufactures candy that is sold to food distributors. The company produces at full capacity for six months each year to meet demand during the “candy season” from Halloween through Valentine’s Day During the other six months of the year, the manufacturing facility operates at 75% of capacity. The Sweet Treats Company provides the following data for the year: The Sweet Treats Company receives an offer to produce 13,000 cases of candy for a special event. This is a one-time opportunity during a period when the Company has excess capacity. What is the minimum sales price. The Sweet Treats Company should accept for the order? Explain Why.
Munabhai
EXERCISE 5 Xi sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one month's credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Xi rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for thes quarterly in March, June, September and December. Xi withdraws $2,000 a month from his business fo his own personal expenses. What is Xi's net cash inflow for March? 1. Prepare a cash flow statement
Question 2 Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she is ordering 230. Daily demand for these calculators is 5. The cost to re-order this item is estimated at $44, while the annual inventory holding cost is 22%. Orders are received two working days after an order is placed. The office operates 52 weeks per year, 5 days per week Determine the reorder point using EOQ. Greater than or equal to 43 and less than or equal to 49 Greater than or equal to 431 and less than or equal to 443 Greater than or equal to 2053 and less than or equal to 2064 Greater than or equal to 6 and less than or equal to 25 4 pts < Previous Next VIV

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS