how many units does the decrease in the reorder point amount to?
Q: The Casings Plant of Wyoming Machines makes plastics shells for the company’s calculators. (Each…
A: Production means number of units produced in a specific period. Given: Sales = 650,000 Beginning…
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Material Costing - It refers to the systematic control of storing, purchasing, and consumption of…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 THE ANNUAL INVENTORY RELATED COST IS THE SUM OF THE ANNUAL HOLDING AND ORDERING COST.…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Answer 1- EOQ= (2AO/C)^1/2 where, A= Annual Average Demand= 500*250=125000 O= Cost per order= 400 C=…
Q: A local retailer anticipates an annual demand 15000 units of a product. The retailer allows…
A: The inventory management aims to accomplish to reach satisfaction on the custom services…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: 22. Step 1: Calculate the order quantity The order quantity is equal to the # Days Inventory x Daily…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Since there are several subparts, according to Bartleby guidelines, we will answer the first three.…
Q: Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is…
A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Reorder point is the point where the inventories are manufactured and restored again. It shows the…
Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units…
A:
Q: The Casings Plant of Wyoming Machines makes plastics shells for the company's calculators. (Each…
A: Lets start with the basics. For calculating production required, we need to use below formula.…
Q: Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: ITEM 1 Reorder Point = 4,200 units ITEM 2 Lead Time Demand = 2,500 units ITEM 3 Safety Stock = 1,700…
Q: Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of…
A: Given: It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a…
Q: he General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of…
A: Economic order quantity is that level of reorder quantity which minimizes the total cost of carrying…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Given information: Working days = 250 The average number of boxes sold per day = 500 Occasionally…
Q: der. Stora
A: Given: To calculate the inventory of the company as,
Q: Terminator, Inc., manufactures a motorcycle part in lots of 300 units. The raw materials cost for…
A: The raw material cost means the cost that is occurred on the purchase of the raw materials. It is…
Q: Each year the Alma Vacuum Company (AVC) manufactures 35,000 of its Supe Duper Dirt Grabber carpet…
A: Option D is the Correct Answer i.e 10,000
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: “Since you have posted a question with many sub-parts, we will solve first three sub-parts for you.…
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the…
A: (B). $12,600 increase
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The reorder point refers to the level of inventory at which the stock is purchased to be sold in the…
Q: What is the annual demand for the boxes of candles? 2. How much is the carrying cost of one box of…
A: Economic order quantity is the optimum order quantity which provides with the minimum expense in…
Q: TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ helps in determining the level of quantity at which an entity can balance its ordering &…
Q: A plastic manufacturing company that makes four major products seeks to expand its operations in the…
A: Note: I am solving the first three subparts. Please repost the remaining subparts separately The…
Q: A plastic manufacturing company that makes four major products seeks to expand its operations in the…
A: Sometimes a company needs to select a operating machine from the various option available to it. The…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 # CALCULATION OF FORECASTED HOLDING COST/CARRYING COST- A-CALCULATION OF ORDER…
Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…
A: Under contribution margin approach the costs are divided into variable and fixed costs .…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The EOQ is a company's optimum order quantity that reduces overall costs associated with purchasing,…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ- It is an sophisticated or ideal quantity that a company should acquire to minimize its cost of…
Q: Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is…
A: Safety of stock is maintained so that the company does not face scarcity of resources. There is no…
Q: supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost…
A: Given: It sells an average of 500 boxes up to maximum 600 boxes. The ordering cost average P400 per…
Q: PLEASE TO PERFORM IN EXCEL AND SHOW FORMULAS Comercial El Suspiro, S.A., purchases 2'100,000 units…
A: The reorder point (ROP) is the inventory level that causes an action to be taken to refill that…
Q: HH Co. uses corrugated cardboard to ship its product to customers. Currently, the company’s returns…
A: The overheads are indirect costs which are necessary for the production process but commonly used by…
Q: o ship its product to customers. Currently, the company’s returns department incurs annual overhead…
A: Standard Overhead rate is actual overhead rate for budgeted output. Few changes in production or…
Q: How many times per year would Item X be ordered? *
A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: how many units does the decrease in the reorder point amount to?
A: It is a shorter term for economic order quantity(EOQ). It is the point at which total cost is…
Q: [The following information applies to the questions displayed below] Iguana, Inc., manufactures…
A: Budgeting - Budgeting is the estimation of revenue and expense to be incurred in future periods on…
Q: PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS Comercial El Suspiro, S.A., purchases 2'100,000 units…
A: The question is related to the Inventory Management. Reorder point is calculated with the help of…
Q: TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION- FORMULAS- 1-REORDER POINT=MAXIMUM DAILY DEMAND…
Q: Can someone help me figure out this problem ? Pretty Lady Cosmetic Products has an average…
A: Operating cycle is a time period taken by a company to sell the inventory and collect the cash from…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A:
Q: Terminator, Inc., manufactures a motorcycle part in lots of 350 units. The raw materials cost for…
A: Given: Lot size = 350 Raw material cost =$170 Value added = $320 Total cost for completed unit…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS
Comercial El Alacrán, S.A., purchases 200,000 units per year of the only product it sells. The cost of each order is $35.00. The annual unit maintenance cost is 23% of its cost of $8.00. The supplier currently takes 5.5 days to deliver, and the company sorts and stores it in 3 days. The company makes significant efforts to shorten these lead times. If it manages to reduce, through an agreement with the supplier, its delivery time to 3.5 days and to do the sorting in 1.5 days, how many units does the decrease in the reorder point amount to?
READ WELL, AND ANSWER CAREFULLY, PLEASE, bartleby expert :)
Step by step
Solved in 3 steps
- 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?Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
- Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was: At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customers request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total order-filling costs of 900,000. There are two types of customers: those who order 50,000 pound lots (small customers) and those who order 250,000 pound lots (large customers). Each customer category is responsible for buying 1,500,000 pounds. The selling price per pound is 2 per lb for the 50,000 pound lot and 3 per lb for the larger lots, due to differences in the type of chocolate. ABC would likely assign order-filling costs to the customer type as follows: a. 450,000, small; 450,000, large (using pounds as the driver) b. 360,000, small; 540,000, large (using revenue as the driver) c. 750,000, small; 150,000, large (using number of orders as the driver) d. 450,000, small; 450,000, large (using customer type as the driver)Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
- 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.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.Jansen 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.
- 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.NoFat manufactures one product, olestra, and sells it to large potato chip manufacturers as the key ingredient in nonfat snack foods, including Ruffles, Lays, Doritos, and Tostitos brand products. For each of the past 3 years, sales of olestra have been far less than the expected annual volume of 125,000 pounds. Therefore, the company has ended each year with significant unused capacity. Due to a short shelf life, NoFat must sell every pound of olestra that it produces each year. As a result, NoFats controller, Allyson Ashley, has decided to seek out potential special sales offers from other companies. One company, Patterson Union (PU)a toxic waste cleanup companyoffered to buy 10,000 pounds of olestra from NoFat during December for a price of 2.20 per pound. PU discovered through its research that olestra has proven to be very effective in cleaning up toxic waste locations designated as Superfund Sites by the U.S. Environmental Protection Agency. Allyson was excited, noting that This is another way to use our expensive olestra plant! The annual costs incurred by NoFat to produce and sell 100,000 pounds of olestra are as follows: In addition, Allyson met with several of NoFats key production managers and discovered the following information: The special order could be produced without incurring any additional marketing or customer service costs. NoFat owns the aging plant facility that it uses to manufacture olestra. NoFat incurs costs to set up and clean its machines for each production run, or batch, of olestra that it produces. The total setup costs shown in the previous table represent the production of 20 batches during the year. NoFat leases its plant machinery. The lease agreement is negotiated and signed on the first day of each year. NoFat currently leases enough machinery to produce 125,000 pounds of olestra. PU requires that an independent quality team inspects any facility from which it makes purchases. The terms of the special sales offer would require NoFat to bear the 1,000 cost of the inspection team. Based solely on financial factors, explain why NoFat should accept or reject PUs special sales offer.NoFat manufactures one product, olestra, and sells it to large potato chip manufacturers as the key ingredient in nonfat snack foods, including Ruffles, Lays, Doritos, and Tostitos brand products. For each of the past 3 years, sales of olestra have been far less than the expected annual volume of 125,000 pounds. Therefore, the company has ended each year with significant unused capacity. Due to a short shelf life, NoFat must sell every pound of olestra that it produces each year. As a result, NoFats controller, Allyson Ashley, has decided to seek out potential special sales offers from other companies. One company, Patterson Union (PU)a toxic waste cleanup companyoffered to buy 10,000 pounds of olestra from NoFat during December for a price of 2.20 per pound. PU discovered through its research that olestra has proven to be very effective in cleaning up toxic waste locations designated as Superfund Sites by the U.S. Environmental Protection Agency. Allyson was excited, noting that This is another way to use our expensive olestra plant! The annual costs incurred by NoFat to produce and sell 100,000 pounds of olestra are as follows: In addition, Allyson met with several of NoFats key production managers and discovered the following information: The special order could be produced without incurring any additional marketing or customer service costs. NoFat owns the aging plant facility that it uses to manufacture olestra. NoFat incurs costs to set up and clean its machines for each production run, or batch, of olestra that it produces. The total setup costs shown in the previous table represent the production of 20 batches during the year. NoFat leases its plant machinery. The lease agreement is negotiated and signed on the first day of each year. NoFat currently leases enough machinery to produce 125,000 pounds of olestra. PU requires that an independent quality team inspects any facility from which it makes purchases. The terms of the special sales offer would require NoFat to bear the 1,000 cost of the inspection team. Assume for this question that NoFat rejected PUs special sales offer because the 2.20 price suggested by PU was too low. In response to the rejection, PU asked NoFat to determine the price at which it would be willing to accept the special sales offer. For its regular sales, NoFat sets prices by marking up variable costs by 10%. If Allyson decides to use NoFats 10% markup pricing method to set the price for PUs special sales offer, a. Calculate the price that NoFat would charge PU for each pound of olestra. b. Calculate the relevant profit that NoFat would earn if it set the special sales price by using its markup pricing method. (Hint: Use the estimate of relevant costs that you calculated in response to Requirement 1b.) c. Explain why NoFat should accept or reject the special sales offer if it uses its markup pricing method to set the special sales price.