Ajewelry firm buys semiprecious stones to make bracelets and rings. the supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. the jewelry firm operates 200 days per year. usage rate is 25 stones per day, and ordering cost are $48.
a. if carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost.
b. if annual carrying costs are 30 percent of unit cost, what is the optimal order size?

In its first year of operations, sunland company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. the remaining $21,900 was received in cash from customers. the company incurred operating expenses of $18,600. of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. in addition, sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. (a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.