Doctor Company prepared the tabulation below at December 31, 2017. Net Income $307,000 Adjustments to reconcile net income to ne

The selected answer is C.

If employees report him for fraud, he could face legal repercussions.

Answer:

6.4 minutes

Explanation:

Daily average for small tools = 445

Working hours = 8, which translates to 8*60 = (480 minutes)

Waiting time =

(image of the operation in the attached file)

= [445]/[(2*35)]

= 445/70

= 6.357 minutes

Opportunity cost is defined as the loss incurred when one chooses one alternative over another.

In this scenario, the forgone option is full-time work along with other costs associated with that period when opting for schooling instead. Room and board expenses remain constant whether attending school or working full time, thus these are not factored in. Earnings from part-time work during school are deducted as they would have been earned during full-time employment.

Thus;
Opportunity cost = $20,000+$10,000+$1,000-$8,000 = $23,000

A) For the first half of the year, the monthly demand averages to 560 / 6 = 93.33
Order size for the first six months can be calculated using: Sqrt(2 x A x O / C)
Where:
O is the cost of placing an order
C is the carrying cost per order
= Sqrt(2 x 93.33 x 55 / 2) = 71.65, rounded to 72
For the second half of the year, the monthly demand is 900 / 6 = 150
Order size for the second six months:
= Sqrt(2 x A x O / C)
= Sqrt(2 x 150 x 55 / 2)
= 90.83 or 91
B) For the first six months: Total monthly cost = (Q/2) x H + (d/Q) x S= (72 / 2) x 2 + (93.33 / 72) x 5 = $143.30 With a $10 discount, S = $ 55 - $10 = $ 45
Monthly TC at Q = 50 = (50/2) x 2 + (93.33 / 50)x 45 = $134.0 Monthly TC at Q = 100 = (100/2) x 2 + (93.33 / 100) x 45 = $142.00
Monthly TC at Q = 150 = (150/2) x 2 + (93.33 / 150) x 45 = $178.00
C)
Indeed, the manager should take advantage of this proposal and order Q = 50 units for the first six months. For the second six months, d = monthly demand = 900 / 6
= 150,

H = $2.00 for each unit monthly, S = $55, & EOQ = 91.
Calculating Monthly TC (Q = 91):
= (91/2) x 2 + (150/91) x 55
= $181.66
Monthly TC (Q = 50):= (50/2)x2 + (150/50)x 45= $185 Monthly TC (Q = 100) = (100/2) x 2 + (150/100) x 45= $167.50
Monthly TC (Q = 150)= (150/2) x 2 + (150/150) x 45= $195