Question 4Love for books bookstore expects sales of R10 000 000,00 next year. Each book sells for R200,00and variable costs applicable in each sale are expected to be 45% of sales. The total cost ofplacing an order with service providers is estimated to be R5 000,00 per order. The serviceproviders take about 30 days to deliver new stock. It costs the business R3 000,00 to carry oneunit of stock per year. Meanwhile, it was estimated that the fixed costs amount to R4 000 000,00.The desired safety stock for Love for books bookstore is 6 000 units.Question 4.1Calculate the Economic Order Quantity for Love for bookstoreQuestion 4.2Calculate the reorder point in units for Love for bookstoreQuestion 4.3Calculate the breakeven point for Love for bookstore

Economic order quantity :— Economic order quantity (EOQ) is a calculation companies perform that…

Question 4.1 Calculate the Economic Order Quantity for Love for bookstore Question 4.2 Calculate the reorder point in units for Love for bookstore Question 4.3 Calculate the breakeven point for Love for bookstore

Question 4.1 Calculate the Economic Order Quantity for Love for bookstore Question 4.2 Calculate the reorder point in units for Love for bookstore Question 4.3 Calculate the breakeven point for Love for bookstore

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 2P

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Question Love for books bookstore expects sales of R10 000 000,00 next year. Each book sells for R200,00 and variable costs applicable in each sale are expected to be 45% of sales. The total cost of placing an order with service providers is estimated to be R5 000,00 per order. The service providers take about 30 days to deliver new stock. It costs the business R3 000,00 to carry one unit of stock per year. Meanwhile, it was estimated that the fixed costs amount to R4 000 000,00. The desired safety stock for Love for books bookstore is 6 000 units. Calculate the Economic Order Quantity for Love for bookstore Calculate the reorder point in units for Love for bookstore Calculate the breakeven point for Love for bookstore
Sub : FinancePls answer very fastt.I ll upvote. Thank You The Rusty Auto Parts Company has sales of $20,000 every month. Its retail prices are twice the wholesale cost (a 100% markup). It buys its parts one 1 month before it anticipates making a sale. What is the inventory at the end of the month? Inventory = $
12. Fruit Cake Specialist sells 36,000 fruit cakes annually. Annual carrying costs are P5 per fruitcake and the ordering costs are P100 per order The firm has decided to maintain a safety stock of one month's sale or 3,000 fruitcakes.. the delivery time per order is 5 days. assume a 365- day year. What is the economic order quantity (EOQ)?
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Question 1. RAMA Textile has a present sales of level of 30,000 Units. It has prepared the following projections for a year : Selling Price per unit Variable Cost per unit Total Cost per unit * 50 * 25 40 1 month Credit period allowed The company proposes to increase the credit period allowed to its custome from 1 month to 2 months. It is envisaged that the change in the policy as above will increase the sales by 10%. The company desires a return of 20% on its investment Vo. are required to examine the proposed Credit Policy.
a. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying cost are $3.50 per unit? b. how long will the EOQ last? how many orders are placed annually? c. as a result of lower interest rates, the finnancial manager determines the carrying cost are now $1.80 per unit. what are the new EOQ and annual number of objects?
Problem 2. JAYSON Inc. has projected sales to be P60o o00 in January. P750 000 in February, and P800 000 in March. JAYSON wans to have 50% of nexl month's sales needs on hand al the end of each month. JAYSON's cost of sales to sales ratio is 60%. Determine February purchases.
eBook Lewis Lumber is considering changing its credit terms from net 55 to net 30 to bring its terms in line with other firms in the industry. Currently, annual sales are $360,000, and the average collection period (DSO) is 60 days. Lewis estimates tightening the credit terms will reduce annual sales to $356,000, but accounts receivable would drop to 35 days of sales. Lewis' variable cost ratio is 60 percent and its average cost of funds is 9 percent. Should the change in credit terms be made? Assume all operating costs are paid at the time inventory is sold and all sales are collected at the DSO. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to the nearest cent. The NPV for the existing credit policy, that is $ , is the NPV for the proposed credit policy, that is $ . Thus, Lewis Lumber change its credit policy.
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Matthew's Fish Fry has a monthly target operating income of $6600. Variable expenses are 80% of sales and monthly fixed expenses are $840. What is the monthly margin of safety in dollars if the business achieves its operating income goal? Question 20 options: $29,760 $37,200 $33,000 $41,400
Ndapandula Investment CC sells about 12 000 bags of poulty grain per year. The Holding costs are N$ 50.00 per bag per year, and the Ordering costs are about N$ 100.00 per order. The Investment company operates 280 days per year. Determine: I. The optimal economic order quantity. II. The total annual inventory costs III. If the demand increases to 13 000 bags per year, what will the total annual inventory costs amount to?
3.- The Company Surteco sells 10.000 units of their wrapped moluldings for 1.5€/unit, per year. They are offering 3/10, n30, and the discount is taken by 40% of the customers. What is the total value of the Accounts receivable? In order to gain market share against Lamidecor, their competitor, they are thinking about offering 4/5,n45. What is now the new value for accounts receivable if the % of discount taken is still 40%?