New Town Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable

Answer:

The amount to be recognized on July 1st is $ 50

Explanation:

1. First, let us analyze the information provided to respond accurately:

Standard price for satellite TV equipment is $50

Standard price for 2 years of satellite TV service stands at $450

A limited-time offer includes equipment and two years of satellite service for $300

Date of sale: July 1st

2. What revenue should the company acknowledge on July 1 when it delivers the equipment and receives full payment?

Utilizing this formula leads us to the answer:

Non-delivered services = Time-limited offer - Standard price of satellite TV equipment

Non-delivered services = 300 - 50 = 250

Revenue recognized = Time-limited offer - Non-delivered services for 2 years

Revenue recognized = 300 - 250

Revenue recognized = $ 50

This is the figure to acknowledge on July 1st, reflecting the standard price of satellite TV equipment. The remaining $ 250 represents deferred revenue, which will be recognized monthly.

Answer: B. A new vendor can be created from the product/service information screen

Explanation:

The accurate statement regarding the Preferred Vendor field in Product and Services items indicates that a new vendor may be established from the product/service information screen.

Contrarily, the other assertions in the question, like adding multiple preferred vendors for each product/service item and the necessity of assigning Preferred vendors to make use of Price rules, are incorrect.

Therefore, option B stands as the right choice.

Answer:

Total cost = Sum of ordering costs + Sum of holding costs

Total cost = DCo     + QH

                     Q              2

Where

D = Annual demand

Co = Cost of ordering per order

Q = EOQ

H = Cost of holding per item annually

D = 40,000 units

Co = $48

H = 18% x $8.00 = $1.44

EOQ = √(2DCo)/H

EOQ = √(2 x 40,000 x $48)/$1.44

EOQ = 1,633 units

Explanation:

EOQ is derived by multiplying two times the annual demand and ordering cost, which is divided by holding cost per item on an annual basis. The annual holding cost is determined as the product of the holding rate and unit cost.