To determine the number of orders to be place in a year, O Total demand per year must be multiplied by the economic order quantity O Total demand per year must be divided by the economic order quantity O Economic order quantity must added to the Total demand per year O Economic order quantity must be subtracted from the Total demand per yea O Economic order quantity must be divided by the Total demand per year

To determine the number of orders to be place in a year, O Total demand per year must be multiplied by the economic order quantity O Total demand per year must be divided by the economic order quantity O Economic order quantity must added to the Total demand per year O Economic order quantity must be subtracted from the Total demand per yea O Economic order quantity must be divided by the Total demand per year

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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Suppose plant capacity were only 13,000 pieces instead of 15,000 pieces each month. Thespecial order must either be taken in full or be rejected completely. Should Carilla accept thespecial order? Show your calculations
ErgoNow sells its main product, ergonomic mouse pads, for $12 each. Its variable cost is $5.40 per pad. Fixed costs are $200,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $260,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 35,000, 45,000, and 75,000 pads. ErgoNow Flexible Budget Budget Amounts Per Unit Units 35,000 45,000 75,000 (1) (2) (3) (4) (5) (1) Contribution Margin Fixed Costs Operating Income Sales Revenue Variable Costs (2) Contribution Margin Fixed Costs Operating Income Sales Revenue Variable Costs (3)…
Phillips HVAC and Plumbing has received a special one-time order for 1,500 faucets (units) at $5 per unit. Phillips currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Phillips management expects no other changes in costs as a result of the additional production. Should the Phillips accept the special order? 1)No, because additional production would exceed capacity. 2)Yes, because incremental costs exceed incremental revenues. 3)Yes, because incremental revenue exceeds incremental costs. 4)No, because incremental costs exceed incremental revenue. 5)No, because the incremental revenue is too low.
Net Steels is a steel manufacturing company. It currently orders 180 metric tons of raw material per order. It was observed that the company often faces stockout. To tackle this issue, the company incorporated a fixed-quantity system (FQS) and collected the following data. The lead time is 2 weeks. Demand Order Cost Item Cost Inventory-Holding Cost 10000 metric tons per year $17000 per order $38000 per year 20 percent per year Assuming there are 50 weeks a year, determine the reorder point. Only for non-integer results, round your answer UP to the nearest integer. For example, if your answer is 5.05, type 6; if your answer is 5, type 5. 2DCO Economic Order Quantity (EOQ), Q* = Cn Reorder point, r = demand rate x lead time Your Answer: Answer
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