Answer:
d. If processed further, the company stands to gain $12 for each unit.
Explanation:
To make the decision, we begin by evaluating the costs and profits associated with each option on a per unit basis.
Profit from the unassembled product is calculated as follows:
Profit = 135 - 60 = $75 for each unit
Profit from the assembled product totals:
Profit = 174 - 60 - 27 = $87 for each unit
Thus, the difference in profit stands at 87 - 75 = $12/unit once assembled.
Accordingly, the company should continue processing further, resulting in an added $12 gain for every unit sold.
Hope that helps.
Response:
A) 100
Clarification:
total sales 3,600 units
cost per unit $200
order placement cost $40
holding cost is $20 annually
working days 360 yearly
lead time is 5 days
Should Mark purchase 200 units per order, what would his average stock be?
daily sales = total sales / working days = 3,600 / 360 = 10 units daily
orders each year = 3,600 / 200 = 18
Mark's order frequency = 360 days / 18 orders = 20 days
average inventory = (200 units / 20 days) x 10 days = 100
I presume Mark has some safety inventory to ensure he can cover the 5-day lead time.
Response:
Clarification:
A suitable reply from a Notary Signing Agent might be to provide the Borrower with the contact details of the Lender and recommend that he reach out to the Lender promptly before proceeding with the signing. This would help the borrower resolve any uncertainties or misunderstandings they may have, potentially encouraging them to complete the signing of all necessary documents.
The total amount in pounds is 19,880.
Given the following data: Production equals 470 boxes, with each tile box requiring 44 pounds of clay mix. Starting inventory is 4,700 pounds, and the desired ending inventory is 3,900 pounds. To find the required direct material purchase, we apply this formula: Purchases = Production + Desired Ending Inventory - Beginning Inventory. The direct material budget (in pounds) is: Production: 470 times 44 equals 20,680; Desired Ending Inventory: 3,900; Beginning Inventory: 4,700. Thus, the total pounds required equal 19,880.
