The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $519,000. What is the most the firm should be willing to pay for installing the system?

Q: on hand or too little?

A: Given: To explain the firm which has more or less inventory on hands as,

Q: What is the best inventory policy for the cable? How does this compare with the current policy of…

A: Given information is: Annual demand = 8000*52 = 416000 meters Ordering Cost = 350 + 550 = £900…

Q: A moped manufacturing company needs 100,000 units of moped tires for its production per year.The…

A: Economic order quantity was an inventory management costing principle used to find out required…

Q: d) Calculate the margin of safety in units and in sales dollars.  e) The President of Benoit is…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: In 2019, Preston Company provided the following data: Sales price per unit P100; Variable cost per…

A: New Fixed cost = 1,500,000 + 500,000 = 2,000,000 New Unit variable cost = P60 - 25% = P45 New…

Q: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much…

A: Economic order quantity It refers to the quantity of goods that an organization should purchase to…

Q: What is the pricing equation and how is it used? If the product list price is $1000 and the retailer…

A: The pricing decision is one of the important decisions for the business, for this decision all…

Q: A company sells 4100 units of a product at 15 JOD per unit, which costs the company JOD 12 to…

A: Markup: The markup is the difference between the selling price of a product or service and the cost…

Q: If a firm’s annual sales are $200 million, what percentage of sales should be spent on quality…

A: Given; Annuals sales: $200 million Percentage spending on quality costs: 18%

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: Carrolton, Inc., currently sells widgets for $80 per unit. The variable cost is $30 per unit, and…

A: The change in income can be calculated by calculating the difference between original net income and…

Q: A business is operating at 90% of capacity and is currently purchasing a part used in its…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has…

A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000…

A: Net income can be defined as the difference between total revenues and total expenses. Expenses can…

Q: Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the…

A: Costs are referred to as the expenses which are required to be paid by the business to run the…

Q: In 2019, Papa Company provided the following data: Sales price per unit P100; Variable cost per unit…

A: New selling price in 2020 = Sales in 2019 - sales x 10% = 100 - 100*10% = P90 per unit Variable cost…

Q: A major retailer of appliances does some market research and finds that when the price of a type of…

A:

Q: Farrow Co. expects to sell 150,000 units of its product in the next period with the following…

A: Incremental income refers to the extra incomes from an extra quantity sold. It is like marginal…

Q: In 2019, Crest Company provided the following data: Sales price per unit P100; Variable cost per…

A: Reduced sale price=Existing price×100-10%=P 100×100-10%=P 90

Q: Dream Corporation is trying to improve its inventory control system and has installed an online…

A: Economic Order Quantity represents the optimal quantity to be purchased while placing every order…

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: Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would…

A: For making the corporation profitable, it is important to make a financial analysis regarding the…

Q: Carey Company had sales in 2019 of $1,609,400 on 61,900 units. Variable costs totaled $866,600, and…

A: Contribution margin is the excess of sales over variable cost. It is the part of the selling price…

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: What is the contribution margin ratio? b. What is the break-even point in dollars? c. What is the…

A: The profit analysis table helps in identifying cost points like contribution and profit, which play…

Q: Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the…

A: The optimum order size is also known as economic order quantity. At this quantity ordered, the total…

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: What would be the impact on the targeted overhead rate if the firm decides to boost marketing…

A: Introduction: Absorption costing, sometimes known as full costing, is a method of calculating…

Q: National Co. uses about 200,000 yards of a particular fabric each year. The fabric costs P25 per…

A: The total annual cost is the cost of all the product cost including fixed and variable both. The…

Q: Booth Company had sales in 2020 of $1,875,000 on 75,000 units. Variable costs totaled $1,125,000 and…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

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: Shiela Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to…

A: At break even sales. Sales - Contribution margin - Fixed costs = 0 or  Sales - Contribution margin =…

Q: The Gizmo Manufacturing Company is considering making and selling a new product. The following data…

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: In 2019, Papa Company provided the following data: Sales price per unit P100; Variable cost per unit…

A: New selling price in 2020 = Sales in 2019 - sales x 10% = 100 - 100*10% = P90 per unit Variable cost…

Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: Whenever we are presented with alternative options, suitable cost benefit analysis should be made to…

Q: Ore Company produces bookcases. Sales were good in 2019. However, with the slowdown in the economy,…

A: Selling price per unit = $600,00060,000 units = $10 per unit Variable cost per unit = $360,00060,000…

Q: change. What would happen to the company's profit if the changes were implemented, and production…

A: Cost that changes irrespective of production level are called fixed costs whereas costs that changes…

Q: Prepare a projected CVP income statement for 2020 assuming the changes have not been made

A: Solution:- Preparation of projected CVP income statement for 2020 assuming the changes have not been…

Q: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much…

A: EOQ, Economic Order Quantity can be defined as the position of ordering the goods according to the…

Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: This numerical has covered the concept of Cost Volume Profit Analysis.

Q: The B Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to…

A: Break even sales at present::Fixed cost/PV ratio is:::P7,50,000.... Break even sales after Increase…

Q: Dream Corporation is trying to improve its inventory control system and has installed an online…

A: The inventory control system is a type of technological solution that helps in managing and tracking…

Q: Calculate the Margin Of Safety in units and in sales dollars? The President of Benoit is under…

A: As your requirement I'm providing D, E, and F solutions only. Please find the answers to the above…

Q: Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100…

A: Calculate the EOQ: EOQ = √((2x Annual demand x ordering cost)/ carrying cost per unit EOQ =…