25. There are 300 working days per year. 1- What is the EOQ? 2- Given the EOQ, What is the average inventory? What is the annual inventory cost?3- In minimizing the cost, how many orders would be made each year? What
Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…
A: EOQ = √ 2 X Annual Demand X Odering cost / Holding cost EOQ = √ 2 X 40,000 X 10 / 30 X 15% EOQ = √…
Q: 4. What if November production was 56,000 units, costs were stable, and sales were 57,000 units?…
A: Under variable costing system, fixed manufacturing overhead is considered as period cost and same is…
Q: 5. Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order…
A: Wyteboard Corp.'s Uses in ink each year = 1440000 gallons Rate per gallon = P2 Fixed cost per order…
Q: Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units.…
A: Given: Demand = 1,000 units Ordering cost = $5 per unit Storage cost = $4 per unit
Q: Suppose that Al Ma'arif Group is engaged in manufacturing and sales of a seasonal product. Based on…
A: Level production plan is used where the demand for the product is seasonal. Under this plan units…
Q: A retailer anticipates selling 4,050 units of its product at a uniform rate over the next year. Each…
A: Economic order quantity is the optimal quantity to be ordered to minimize the total cost.
Q: A company has international sales with 90 da erm. Their Inventory turnover period is 30 days. What…
A: The days sales in inventory is that accounting ratio which shows that how much time the…
Q: A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: Carrefour estimates an annual demand of a grocery product at 5400 kgs. It costs RO 100 to make and…
A: Level at which company should place the order is known as reorder point.
Q: Manitoba Transport collects 75% of its monthly sales immediately and the rest at the end of the…
A: Break-Even Sales - Break-even sales defined as the sales at which the company covers only the…
Q: A variable cost of $7 per unit of product is equal to 70% of the selling price. The fixed cost for…
A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…
Q: 1. MGR Corporation sells table napkins. These are sold by dozen per package for Php 20. They sell…
A: whenever there are production of goods and services there is environment of the cost associated with…
Q: A company is creating and selling a new product. They can sell each unit for $26.29. the variable…
A: Selling price = $ 26.29 Variable cost = $ 15.04 Fixed cost = $ 2968
Q: A company requires 8,000 units of material A per month. The cost per order is $950 and the holding…
A: Total cost of buying the material includes holding cost + ordering cost
Q: For next year, if the expected sales quantity is 5,000 units, what is the number of units needed to…
A: Expected sales xxx Add quantity needed in ending inventory xx Total quantity required for the period…
Q: Using the following Quarterly Sales Demand Data; read and answer the questions listed below.…
A:
Q: 1. The Air Supply store begins each week with 365 tires in stock. This stock is depleted each week…
A: The carrying cost is the cost of holding inventory spend over a period of time by the entity.
Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: SamaCell has a demand of 2,000 cells per year. The cost of each unit is $80, and the inventory…
A: Economic Order Quantity (EOQ) refers to the concept of estimating the ideal quantity that a business…
Q: For a company operating 300 days a year, the annual demand is 63,000 units, the lead time is 4…
A: Formula: Daily demand units = Annual demand units / Number of operating days in a year. Reorder…
Q: The monthly demand of GHI's sole product is 30,000 cases. Based on data analysis, the carrying cost…
A: Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…
Q: Croy Inc. has the following projected sales for the next five months: Month Sales in Units April…
A: Croy Inc. Production Budget April May June Expected Unit Sales…
Q: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories,…
A: Part 1:-Reorder Point It is the level of inventory at which we need to replenish the inventory…
Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…
A: Inventory level at which business should place order is known as reorder point in business.
Q: What is BBOS’s total inventory cost per year,
A: The optimum units of any given product that must be ordered such that its ordering and holding…
Q: The cost of product X is 30 percent of its selling price, and the carrying cost is 8 percent of…
A: Accounts receivable for 60 days = Sales per month x 2 months = 25000 x 2 = P50,000
Q: Nowlin Pipe & Steel has projected sales of 6,400 pipes this year, an ordering cost of $5 per order,…
A: The conceptual formula used:
Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…
A: Level of inventory at which business should place order for the inventory is known as Reorder point.
Q: A product has a daily demand 60 unitsOrdering cost RO 200, and holding cost RO 3 per unit per year.…
A: Economic order quantity is the method of inventory management where we calculate how much units are…
Q: Sapphire Aerospace operates 52 weeks per year, and its costof goods sold last year was $6,500,000.…
A:
Q: GGG Company Assume that the firm is expecting to have the following quarterly unit sales with a…
A:
Q: Croy Inc. has the following projected sales for the next five months: Month Sales in Units…
A: Budgeted production = Budgeted sales + Desired ending inventories - Beginning inventory
Q: Given the following informations annual sales in units 30,000 cost of placing an…
A: a.Calculation of EOQ:
Q: MJ Department Store expects to generate the following sales figures for the next three months: July…
A: Expected sales figure for the next 3 months Sales Gross Cost of…
Q: 1) The two most important questions as an inventory manager is how much units to order and when to…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order,…
A: Economic Order Quantity refers to optimal level of inventory being purchased by an entity while…
Q: BM Enterprise reported business transactions for a certain month in 2020: Unit Price, P55.75;…
A: The question is related to Breakeven Point. It is that level of sales at which there is no profit or…
Q: TS Co has daily demand for ball bearings of 40 a day for each of the 250 working days (50 weeks) of…
A: We have the following information: TS Co has daily demand for ball bearings of 40 a day for each of…
Q: XYZ Inc. needs 400 kgs of a material per month. It costs OMR 100 to make and receive an orderand it…
A: Correct option is as fallows Re order point = average daily sales × lead time + safety stock
Q: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories,…
A: In basic terms we have to maintain our inventory by managing properly so that we don't get overstock…
Q: A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is…
A: As per Bartleby guideline, if questions are interlinked then first three sub parts to be answered.…
Q: Ekor bakery sells doughnut. The annual demand is 10,000 per year. The ordering cost is $21, and…
A: The excess raw material will be having much holding cost and carrying cost. The costs should be…
Q: A company stocks an item that is consumed at the rate of 35 units each day. Every time an order is…
A: Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize…
Q: A company has international sales with 90 days term. Their Inventory turnover period is 30 days.…
A: The activity ratios are the accounting ratios that measures the activity level of…
Q: Sosa Company has $39 per unit in variable costs and $1,900,000 per year in fixed costs. Demand is…
A: Answer Variable cost = $39 per unit Fixed cost = $1,900,000 Estimate demand = 138,000 Markup = 35%…
Q: Demand for a product is 12,000 units per year. Every time an order is made, the company must pay…
A: Cost of inventory is the total cost of ordering and carrying the inventory.
Q: Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand…
A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…
Step by step
Solved in 3 steps with 1 images
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
- Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
- Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
- Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.