Determine which shipping alternative,one day or three days, is best when the holding cost, of and item is $1,000 per year, the one-day shipping cost is $40, and the three-day shipping cost is : a. $35, b. $30

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: 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: The selling price of Product Y is set at $1,200 for each unit and sales for the coming year are…

A: Introduction:- Calculation of target profit as follows:- Target profit =Investment x 40%

Q: 2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information.…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Example 1. Surge Electric uses 4000 toggle switches a year. Switches are priced as follows. 1 to…

A: Order quantity 1-499,                                         = 816.4965809 Optimal quantity is not…

Q: Assume Intervale Railway is considering hiring a reservations agency to handle passenger…

A: Following are the calculation of total reservation cost:

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: Cost of Producing one unit = labor cost + material cost + variable cost Cost of Producing one P22 +…

Q: Trecor Co plans to buy a new machine to meet expected demand for a new product, Product T This…

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows) IRR is a rate at…

Q: wn temporarily for three months. The selling price and other c 00 -280 per unit -60 per unit 50,000…

A: The manufacturing cost is the total cost of all resources used in the manufacture of a product. The…

Q: vour options for shipping Sa00.000 of machine parts from Hamilton to Malaysia, are use a ship that…

A: Daily holding cost = 28 Difference in cost per day shipping cost = 98

Q: The cost of producing a certain commodity consists of P45.00 per unit for labor and material cost…

A: Total Variable cost per unit = P45.00 + P15.50 = P60.50

Q: Assume that Phoenix decides to accept the special order at a unit sales price that will add $400,000…

A: Assuming variable cost as $15; and offered cards as 10,000. Special order: The order received from…

Q: A machinery with an initial cost of $330,000 and a service life of 7 years is being considered for…

A: Present worth refers to the current value of the amount which is expected to be received in future…

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: Assume Intervale Railway is considering hiring a reservations agency to handle passenger…

A: Total reservation cost = Fixed costs (flat fee) + Variable cost (cost per passenger reservation)

Q: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold…

A: Work in process (WIP), work in advance (WIP), merchandise in preparation, or in-process stock are a…

Q: 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the…

A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…

Q: The rental cost of renting a machine that is $20,000 per year plus $0.70 per machine hour of use…

A: Cost is the amount of money incurred on the making or selling of the goods or services. The cost, in…

Q: Ndapandula Investment CC sells about 12 000 bags of poulty grain per year. The Holding costs are N$…

A: Company is regularly working to manage the inventory. The inventory is managed in order to…

Q: A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost…

A: EOQ (Economic Order Quantity):-EOQ is the minimum order quantity that one should order to minimize…

Q: The big C is considering a change in its cash-only sales policy. The new terms of sale would be one…

A: Formula for cost of switching to the new policy:- = price per unit* unit sales per month ( current…

Q: Find break-even point where a manager has determined that a potential new product can be sold at a…

A: Break even point is the situation where companies total cost will be equal to its total revenue…

Q: Please calculate the equivalent annual cost for a truck that has an initial cost of $80,000, annual…

A: ACCORDING TO THE RULE, BECAUSE YOU HAVE POSTED MULTIPLE QUESTIONS, WE WILL ANSWER THE FIRST QUESTION…

Q: Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows:…

A: Raw material  4931.50 Work in progress 2780.82 Finished goods 6986.30 Debtor  16438.35…

Q: Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The…

A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: A Break-even point is a point where a company's revenues and expenses were equal within a specific…

Q: A company believes it can sell 5,800,000 of its proposed new optical mouse at a price of $11.00…

A: The question is based on the concept of Financial analysis.

Q: What is the annual equivalent cost of purchasing a lift truck that has an initial cost of $65,000,…

A: The equivalent annual cost is the tool of capital budgeting where the annual cost of owning and…

Q: Teddy Co plans to buy a new machine to meet expected demand for a new product, Product T. This…

A: Answer-  Part 1 -  Calculation of NPV - Nominal discount rate using Fisher effect: 1.057 x 1.05 =…

Q: The more reliable sales amount from which to base projected sales is a) Latest month b) Latest year…

A: Financial Planning has utmost important in any business and strategic management.  If business is…

Q: Suppose that the current price of titanium is $500 per oz with costless storage. The term structure…

A: Forward price The forward price is referred to as the predetermined price of a commodity at a…

Q: You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt.…

A: Break even point in units = Fixed costs / contribution margin per unit  Break even point in sales…

Q: The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The…

A: Net present value - It is the sum of the present value of all future cash inflows  minus the sum of…

Q: Two costs for construction of a small, remote mine are for labor and transportation. Labor costs are…

A: Computation:

Q: An investment of $40,000 today is expected to give rise to annual contribution of $25,000. This is…

A: Net present value (NPV) represents the present values of future cash flows discounted at a rate. The…

Q: (b) What is the break-even sales in RM for an operation that sells 615 products at RM 17.50 if each…

A: Break even sales in RM = Fixed cost/Contribution margin ratio

Q: Your options for shipping $100,000 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are…

A: Shipping cost refers to the cost of transferring the goods from one location to another.  Holding…

Q: Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that…

A: The question is based on the concept of finding economic order quantity (EOQ) . EOQ is defined as…

Q: An investment of $80,000 today is expected to give rise to annual contribution of $45,000. This is…

A: Given: Initial investment: $80,000 Annual Contribution: $45000 Production Volume: 15,000 units…

Q: A process for producing the mosquito repellant Deet has an initial investment of $210,000 with…

A: Payback Period: The payback period method is a traditional capital budgeting method. It is used to…

Q: A supplier sells MF Tires to dealers. The annual demand is approximately 1,000 tires. The supplier…

A: Economic order quantity means the quantity to be order so that total inventory cost will be…

Q: The selling price of a product has been set at $300 per unit, and at that price the company expects…

A: Target costing is one of costing technique in which target costs are being determined on the basis…

Q: A scrap metal dealer purchased a truck for $45,000, and the maintenance cost for the truck was $890…

A: Given: Cost of truck = $45,000 Maintenance cost = $890 Revenues = $5,000 Sale value = $12,000

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.