A sole proprietor owned an office building with a cost of $300,000 and accumulated depreciation of $40,000, using modified accel

<span>Descriptive Statistics is employed in this case (please provide feedback, thanks)</span>

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.

1) The minimum average total cost occurs when Ted catches and processes 2,000 fish, leading to a cost of $45 per fish. 2) When the market price is set at $51 per fish, Ted's optimal output is 3,000 fish, yielding a profit of $12,990. 3) At a market price of $45 per fish, Ted would again produce 2,000 fish but would not earn any profit.

Answer: $36,000 loss

Explanation:

Initial cost = $250,000

Shipping fees = $3,500

Setup fees = $2,500

Annual maintenance = $5,000

Depreciation amount = $25,000

Proposed selling price = $200,000

Total costs involved = $(250,000 + 3,500 + 2,500 + 5,000)

Total costs involved = $261,000

Depreciation amount = $25,000

Equipment's book value = $261,000 - $25,000 = $236,000

Calculating gain/loss = Book value - selling price

Gain/loss = $236,000 - $200,000

$36,000 loss

Answer:

Strategic planning.

Explanation:

A strategic plan serves as a document outlining an organization's direction. It can vary in length from a single page to an entire binder depending on the business's scale and intricacy. Most managers often find value in having a strategic plan.