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PtichkaEL
1 month ago
15

Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost $8.00, annual demand of 4

0000, and ordering cost of $48.
Business
1 answer:
Nady [2.9K]1 month ago
7 0

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.

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Allo Foundation, a tax-exempt organization, invested $200,000 in cost-saving equipment. The equipment has a five-year useful lif
harina [3203]

Answer:

Net Present Value = $ 34,310.45  

Explanation:

The Net Present Value (NPV) represents the difference between the present value of cash inflows and outflows. A positive NPV indicates a favorable investment decision, while a negative value suggests otherwise.

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Present Value of annuity= A × 1 - (1+r)^(-n)/r  

A refers to Annual cash flow, - 65,000, r is the discount rate at 12%, and the term is 5 years.

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1 month ago
Do you dislike waiting in line? supermarket chain kroger has used computer simulation and information technology to reduce the a
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Answer:

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Show the probability density function for the waiting times at Kroger, assuming they are exponentially distributed.

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Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor
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Answer:

Indirect manufacturing cost=  $22100

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The following data is provided:

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Direct labor $ 3.10

Variable manufacturing overhead $ 1.35

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