3 Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales.The inventory manager plans to order zen-zens 38 times over the next year. The carrying cost is $0.03 per zen-zen per year. The order cost is $661 per order. It turnsout that the marketing manager has underestimated the zen-zen market. The zen-zens are a smash, and current estimates are that the company will sell 8 million ofthem per year. Should the inventory manager simply double the EOQ order quantity? Find the new EOQ, and verify that it is the correct order quantity by finding thenew carrying cost and new ordering cost.Should the inventory manager simply double the EOQ order quantity? (Select the best response.)O A. YesO B. NoWhat is the new EOQ?zen-zens (Round to the nearest whole unit.)What is the new annual carrying cost for the zen-zens?(Round to the nearest dollar.)What is the new annual ordering cost for the zen-zens?$ (Round to the nearest dollar.)

The inventory management model where the costs related to holding and carrying such inventory is…

Should the inventory manager simply double the EOQ order quantity? (Select the best response.) O A. Yes B. No What is the new EOQ? ] zen-zens (Round to the nearest whole unit.) What is the new annual carrying cost for the zen-zens? $I (Round to the nearest dollar.) What is the new annual ordering cost for the zen-zens? (Round to the nearest dollar.)

Should the inventory manager simply double the EOQ order quantity? (Select the best response.) O A. Yes B. No What is the new EOQ? ] zen-zens (Round to the nearest whole unit.) What is the new annual carrying cost for the zen-zens? $I (Round to the nearest dollar.) What is the new annual ordering cost for the zen-zens? (Round to the nearest dollar.)

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

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Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 40 tímes over the next year. The carrying cost is $0.03 per zen-zen per year. The order cost is $594 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost. What is the annual carrying cost for the zen-zens? P (Round to the nearest dollar)
Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 25 times over the next year. The carrying cost is $0.01 per zen-zen per year. The order cost is $510 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost. What is the annual carrying cost for the zen-zens? (Round to the nearest dollar.)
Dream Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of P4 per order, and carrying costs of P1.008 per unit. The following year, the company. learns it can reduce ordering costs to P1 per order but that carrying costs will stay the same at P1.008 per unit. What is the total cost of inventory to be expected?
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 60,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.20 per unit.a. What is the economic ordering quantity?___________Units b. How many orders will be placed during the year? __________Orders c. What will the average inventory be? ____________Units d. What is the total cost of ordering and carrying inventory? $____________
Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $371. It plans to lower the price to $318 next year. Its cost of goods sold for the Hyper 500 is $212 per unit, and this year's sales are expected to be 21,000 units. a. Suppose that, if Hyperion drops the price to $318 immediately, it can increase this year's sales by 27% to 26,670 units. What would be the incremental impact on this year's EBIT of such a price drop? b. Suppose that, for each printer sold, Hyperion expects additional sales of $78 per year on ink cartridges for the three years, and Hyperion has a gross profit margin of 61% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this year?
Chapter 13, Question 8. Attached is a similar question with answers. Please answer the same four parts for the new question
Larson, Inc., manufactures backpacks. Last year, it sold 87,500 of its basic model for $15 per unit. The company estimates that this volume represents a 25 percent share of the current market. The market is expected to increase by 15 percent next year. Marketing specialists have determined that as a result of new competition, the company's market share will fall to 20 percent (of this larger market). Due to changes in prices, the new price for the backpacks will be $12 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates. Required: Estimate Larson's sales revenues from this model of backpack for the coming year. Sales revenue
Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year?-What will the average inventory be? Thank you in advance.
The Widget Co. currently sells 800 widgets per week for a price of $7.00 each. Their market research indicates that for each $0.50 increase in price they will sell 25 fewer widgets per week. What price should they charge to maximize sales income?
Transcribed Image Text: You have been hired as a financial manager by Alpha Company which sells 2,700 of car batteries per year, and places orders for 600 of metals. The Company has no safety stocks. Moreover, the financial analyst estimates a 50% probability of no shortages in each cycle, and the likelihood of inventory shortages of 10, 20, and 30 units as 0.25, 0.15, and 0.10 respectively. The carrying cost per unit per year is $2. The stockout cost is $5, What is the optimal level of safety stock should you recommend? You plan to consider safety stock of 0, 10, 20, and 30 units.
Hi Tech Corporation (HTC) expects to order 295,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; the purchase price per chip is $32; and the firm’s inventory carrying costs is equal to 18 percent of the purchase price. What is the economic ordering quantity for chips?
Dodge Ball Bearings had sales of 12,000 units at $80 per unit last year. The marketing manager projects a 30 percent increase in unit volume sales this year with a 15 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 7 percent of total sales. What is your net dollar sales projection for this year?

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