Business, 11.09.2021 02:10 kelseiroll8554

Danny Steel, Inc., fabricates various products from two basic inputs, bar stock and sheet stock. Bar stock is used at a steady rate of 1,000 units per year and costs $200 per bar. Sheet stock is used at a rate of 500 units per year and costs $150 per sheet. The company uses a 20 percent annual holding cost rate, and the fixed cost to place an order is $50, of which $10 is the cost of placing the purchase order and $40 is the fixed cost of a truck delivery. The variable (i. e., per unit charge) trucking cost is included in the unit price. The plant runs 365 days per year. Required:
a. Use the EOQ formula with the full fixed order cost of $50 to compute the optimal order quantities, order intervals, and annual cost for bar stock and sheet stock. What fraction of the total annual (holding plus order) cost consists of fixed trucking cost?
b. Using a week (seven days) as the base interval, round the order intervals for bar stock and sheet stock to the nearest power of 2. If you charge the fixed trucking fee only once for deliveries that coincide, what is the annual cost now?
c. Leave the order quantity for bar stock as in part b, but reduce the order interval for sheet stock to match that of bar stock. Recomputed the total annual cost and compare to part b. Explain your result.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 15:30

Kayla and jada are roommates in new york city. both kayla and jada recently received pay raises. kayla now buys more movie tickets than before, but jada buys fewer. kayla behaves as if movie tickets are goods and jada's income elasticity of demand for movie tickets is

Answers: 2

Answer

Business, 21.06.2019 19:20

Anderson, a computer engineer, and spouse, who is unemployed, provide more than half of the support for their child, age 23, who is a full-time student and who earns $7,000. they also provide more than half of the support for their older child, age 33, who earns $2,000 during the year. how many dependents may the andersons claim on their joint tax return?

Answers: 3

Answer

Business, 22.06.2019 06:20

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u.s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.

Answers: 2

Answer

Business, 22.06.2019 09:40

As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?

Answers: 3

Answer

You know the right answer?

Danny Steel, Inc., fabricates various products from two basic inputs, bar stock and sheet stock. Bar...

Questions