Zerbel Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month: Month January Units Total Shipping Shipped Expense February 7 March April May June 4752368 $2,200 $3,100 $2,600 $1,500 $2,200 $3,000 $3,600 Using the high-low method, estimate the cost formula for shipping expense. July

Zerbel Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month: Month January Units Total Shipping Shipped Expense February 7 March April May June 4752368 $2,200 $3,100 $2,600 $1,500 $2,200 $3,000 $3,600 Using the high-low method, estimate the cost formula for shipping expense. July

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...

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Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation: Line Item Description Shipping Procedure A Shipping Procedure B Number of shipping errors 144 120 Hours from ordered to shipped 17.3 20.2 Shipping time (hours from shipped to delivered) 6.7 9.5 Pounds of goods shipped 1,520,000 720,000 Number of shipments 400 300 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet a. Compute the following performance metrics for each…
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Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation: Shipping Procedure A Shipping Procedure B Number of shipping errors 105 132 Hours from ordered shipped 16.3 19.2 Shipping time (hours from shipped delivered) 8.7 8.5 Pounds of goods shipped 860,000 797,000 Number of shipments 306 315 a. Compute the following performance metrics for each program: (1) Average number of shipping errors per shipment, rounded to three decimal places. Procedure A: error per shipment Procedure B: error per shipment (2) Hours from ordered to delivered, rounded to one decimal place. Procedure A: hours from ordered to delivered Procedure B: hours from ordered to delivered (3) Average pounds of goods per shipment, rounded to two decimal places. Procedure A: Ibs. of goods per…
Last Question that I wasnt able to take a picture of says: What is the minimum total cost?
The following monthly data are available for Crane Company. which produces only one product: Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June? $9500 $1750 $42000 $84000
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.
The following monthly data are available for Concord Corporation. which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June? $84000 $1400 $42000 $26400
The following monthly data are available for Swifty Corporation. which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 4000 units. How much is the margin of safety for the company for June? $1400 $42000 $114400 $84000
Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: Monthly Unit Sales 3,200 7,200 11,400 9,400 March April May June 31,200 Total units sold If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 31,200 units over four months at a level of 7,800 per month. a. What is the ending inventory at the end of each month? Compare the unit sales to the units produced and keep a running total. Ending Inventory March units April units May units June units