Firm C’s demand for a product is 60 units per month. Its supplier charges an ordering cost of $40 per order and $35 per unit with a 20% discount for orders of 100 units or more. Firm C incurs a 20% annual holding cost. Calculate the economic order quantity without the discount. Then calculate the economic order quantity with the discounted price. What will be the change in Firm C’s annual total cost (purchasing, holding, and ordering) if it decides to take advantage of the quantity discount?

Answer:

$5,107.04

Explanation:

The computation of the change in the annual total cost is shown below;

Without a  discount, the annual total cost is

The computation of the economic order quantity is shown below:

[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]

[tex]= \sqrt{\frac{2\times \text{720}\times \text{\$40}}{\text{\$7}}}[/tex]

= 91 units

The annual demand is

= 60 × 12 months

= 720

And, the carrying cost is

= $35 × 20%

= $7

Now The computation of the total cost is shown below:

= Purchase cost + ordering cost + carrying cost

where,  

Purchase cost = Annual consumption × Cost per unit

                       = 720 × $35

                       = $25,200

Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order

                       = (720 ÷ 91) × $40

                       = $316.48

Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit

                      = (91 ÷ 2) × 7

                      = $318.50

Now put these values to the above formula  

So, the value would equal to

= $25,200 +  $316.48 + $318.50

= $25,834.98

Now if we take the economic order be 101

So, the total cost would be

= Purchase cost + ordering cost + carrying cost

where,  

Purchase cost = Annual consumption × Cost per unit

                       = 720 × $35 × (1 - 0.20)

                       = $20,160

Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order

                       = (720 ÷ 101) × $40

                       = $285.14

Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit

                      = (101 ÷ 2) × 7 × (1 - 0.20)

                      = $282.80

Now put these values to the above formula  

So, the value would equal to

= $20,160 +  $285.14 + $282.80

= $20,727.94

Now the change in the annual total cost is

= $25,834.98 - $20,727.94

= $5,107.04

OKRs were naturally integrated into the management of MyFitnessPal. A successful innovation to the OKR system made by Mike Lee was to match objectives to people rather than match people to objectives.
A. True
B. False

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $38,550. What is the value of her personal possessions

Analysts look for red flags in financial statements that may signal financial trouble. Which of the following is a red flag that suggests that a company may be in​ trouble? A. a consistent movement in​ sales, merchandise​ inventory, and accounts receivable B. operating activities are a major source of cash flows C. a significant decrease in net income for several years in a row D. a reduction in the debt ratio

why does crime exist?​

When a cable company is awarded sole possession to franchise in a community, that franchise is now a: Group of answer choices

The fictional country of Anastialia is a small country with rich resources in minerals. In an 8 hr work day it can produce 100 pounds of silver or 50 pounds of copper. If Anastialia decides to produce copper instead of silver it is ignoring the fact that its silver production has a(n)________ to copper.

a. production advantage
b. absolute advantage
c. comparative advantage

With current technology, suppose a firm is producing 800 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 5 units of land, 4 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20 per unit, respectively.
a. If the firm can sell these 800 units at $1 per unit, will it continue to produce banana bread?
b. What is the firm's total revenue?
c. What is the firm's total cost?
d. What is the firm's profit or loss?

Diamond and Turf Inc. is considering an investment in one of two machines. The sewing machine will increase productivity from sewing 130 baseballs per hour to sewing 234 per hour. The contribution margin per unit is $0.48 per baseball. Assume that any increased production of baseballs can be sold. The second machine is an automatic packing machine for the golf ball line. The packing machine will reduce packing labor cost. The labor cost saved is equivalent to $26 per hour. The sewing machine will cost $305,500, have an eight-year life, and will operate for 1,400 hours per year. The packing machine will cost $131,800, have an eight-year life, and will operate for 1,200 hours per year. Diamond and Turf seeks a minimum rate of return of 12% on its investments.Present Value of an Annuity of $1 at Compound InterestYear 6% 10% 12% 15% 20%1 0.943 0.909 0.893 0.870 0.8332 1.833 1.736 1.690 1.626 1.5283 2.673 2.487 2.402 2.283 2.1064 3.465 3.170 3.037 2.855 2.5895 4.212 3.791 3.605 3.353 2.9916 4.917 4.355 4.111 3.785 3.3267 5.582 4.868 4.564 4.160 3.6058 6.210 5.335 4.968 4.487 3.8379 6.802 5.759 5.328 4.772 4.03110 7.360 6.145 5.650 5.019 4.192A. Determine the net present value for the two machines. Use the table of present values of an annuity of $1 above.B. Determine the present value index for the two machines.C. If Diamond and Turf has sufficient funds for only one of the machines and qualitative factors are equal between the two machines, in which machine should it invest?

A company has $110,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $1,000 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

The process of starting, organizing, managing, and assuming the responsibility for a business is called capitalism.
a. True
b. False

Youngstown Rubber reports the following data for its first year of operation. Direct materials used $710,200 Direct Labor 350,000 Cost of goods manufactured 1,030,300 Finished goods inventory, ending 190,900 Finished goods inventory, beginning 0 Manufacturing overhead 100,100 Work in process inventory, beginning 0 Work in process inventory, ending 130,000 What are the total manufacturing costs to account for

A company purchased a weaving machine for $273,400. The machine has a useful life of 8 years and a residual value of $15,000. It is estimated that the machine could produce 760,000 bolts of woven fabric over its useful life. In the first year, 110,000 bolts were produced. In the second year, production increased to 114,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year

differences between generic and enterprise competition

A company that sends email advertising messages to millions of individuals without their permission violates?

in international trade the Monopoly tendency appearing in which form​

Hart Company has the following activities in 2012. The company had total cash sales of $2,000. During the year they incurred and paid wages of $500 and salaries of $400. They borrowed $600 from the bank that will be paid back in 2013. This borrowing incurred interest in 2012 of $60. However, this interest will be paid to the bank in 2013. Finally, the company declared and paid cash dividends of $20 during 2012. How much Net Income will the company show on the 2012 Income Statement?

Which of the following decisions is part of the HR function of compensation?
A. What responsibilities should be part of an office worker's job
B. How to make sure office workers are treated ethically
C. Which employees will do the best work in the fastest time
D. Whether to pay office workers a wage or a salary

Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital?
Target common equity weight: 80 percent
Target debt weight: 20 percent
Cost of equity: 15 percent
Cost of debt: 5 percent
Tax rate: 35 percent
A) WACC = 12.65 percent
B) WACC = 8.45 percent
C) WACC = 13.00 percent

In the challenging world of retail sales, Macy's, Inc.'s (M's) revenues are declining while expenses are generally flat. Based on recent conversations with management at Macy's, analysts believe that dividends will decline at a rate of 7% perpetually. The firm just paid a dividend of $5.10 per share and the required return on the stock is 3%
a) At what price should a share of M stock sell today? (2 pts.)
b) Calculate what the stock should sell for 8 years from now. 12 pts.)
c) Briefly explain, perhaps with the aid of a single calculation, why an investor would still be interested in buying the stock today even though the stock price is predicted to fall acrosats time. (2 pts.)

Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $75. Variable finishing costs are expected to be $8 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases.

On January 2, 2014, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2015. Expenditures for the construction were as follows: Indian River Groves borrowed $2,200,000 on a construction loan at 12% interest on January 2, 2014. This loan was outstanding during the construction period. The company also had $8,000,000 in 9% bonds outstanding in 2014 and 2015. The interest capitalized for 2014 was:

Which of the following arguments are in favor of active stabilization policy by the government? Check all that apply

On January 1, Vermont Corporation had 48,400 shares of $9 par value common stock issued and outstanding. All 48,400 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 910 shares of treasury stock for $24 per share and later sold the treasury shares for $18 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a

Financial well-being refers to a person that (check all that apply) *

***ECONOMICS***Income tax is money that has to be paid to the government based on:

A. the amount of money a person earns.

B. the value of a person's home or land.

C. the cost of a product being purchased.

D. the number of cars a person owns.

HELP ME ASAP!!!
Select the correct answer.
What does the term sustainability refer to in construction?
A.
a building that does not depend on traditional energy sources to power its internal systems
B.
a building that uses only non-renewable energy sources
a building that is environmentally responsible and resource-efficient throughout its life cycle
C.
D.
a building that can withstand the pressure of external forces such as strong winds

What is the trial balance used?

a. It is a financial statment.

b. It doesn't contribute to the accounting cycle.

c. It records balance of a balance sheet.

d. It records balance of accounts.

Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75% equity. The CFO believes the firm should use more debt, but the CEO is reluctant to increase the debt ratio. The risk-free rate, rRF, is 5.0%, the market risk premium, RPM, is 6.0%, and the firm's tax rate is 25%. Currently, the cost of equity, rs, is 11.5% as determined by the CAPM. What would be the estimated cost of equity if the firm used 60% debt?A) 10.95%.
B) 11.91%.C) 12.94%.D) 14.07%.E) 15.29%.

QS 23-11 Selection of sales mix LO P3 Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,700 production hours available. Contribution margin is $6 for product X and $5 for product Y. 1. Calculate contribution margin per production hour. 2. What is the most profitable sales mix for this Company

Which case below best represents a case of price​ discrimination? A. A professional baseball team pays two players with different batting averages different salaries. B. A major airline sells tickets to senior citizens at lower prices than to other passengers. C. An insurance company offers discounts to safe drivers. D. A utility company charges less for electricity used during​ "off-peak" hours, when it does not have to operate its​ less-efficient generating plants.