Use this data for problems 9-11:Midwest Charm, Inc. specializes in selling scented farm equipment. The company has established apolicy of reordering inventory once a month. A recently employed MBA has considered Midwest'sinventory problem from the EOQ model viewpoint. If the following constitute the relevant data, howdoes the following current policy compare with the optimal policy?Ordering costCarrying costPurchase priceTotal sales for yearSafety stock= $2,525 per order= 35% of purchase price= $15,000 per unit= 660 units= 159. At the EOQ, how often would the company need to reorder?a. Once a weekb. Every other weekc. Once a monthd. Once every 2 monthsOnce every 3 monthsе.

EOQ is Economic Order Quantity. Usage of EOQ is to ensure that unnecessary working capital is not…

Answered: 9. At the EOQ, how often would the…

9. At the EOQ, how often would the company need to reorder? a. Once a week b. Every other week c. Once a month d. Once every 2 months e. Once every 3 months

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 5QE: Use the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of...

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Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Refer to the information for Jasper Company on the previous page.Required:1. Prepare an income statement for Jasper for last year. Calculate the percentage of sales for eachline item on the income statement. (Note: Round percentages to the nearest tenth of a percent.)2. CONCEPTUAL CONNECTION Briefly explain how a manager could use the incomestatement created for Requirement 1 to better control costs.
Question 5: IKIT company produces and sells recliner chairs. IKIT uses an absorption product costing system, which means that both variable and fixed overhead are included in the product cost. Cost estimates for a recliner chair and expected production volume for next year are as follows: Per Unit Total $40 $20 Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Fixed manufacturing overhead Expected volume of production (units): $14 $15 $380,000 $460,000 42,000 The company's owners expect to earn a rate of return (ROI) of 30% on their invested assets of $2,500,000. Required: a. IKIT currently uses the cost-plus pricing method. Compute the mark-up percentage and target selling price that will allow IKIT to earn its desired ROI of 30% for next year.. Click or tap here to enter text.
Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D=Demand in units for one year, P=Ordering cost per purchase order, C=Carrying cost of one unit in stock, Q=Any order quantity.) ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC Part 2 (Round your answer to the nearest whole number.) The EOQ is 560 jerseys. Part 3 Requirement 2. Calculate the number of orders that will be placed each year. Determine the formula used to calculate the number of orders that will be placed each year, then calculate the orders per year. (Round your answer up to the nearest whole number.) ÷ = Number of orders
Chart included in screenshot as well as prior analysis** CVP analysis is used to analyze the effects of changes in selling prices, costs and volume on profits. It is also used to determine target profit, the margin of safety, operating leverage, product mix and choosing among marketing strategies and others. Suppose Byron management has a target operating income of $3,000. Assume the same costs as above and the sell price remains at $24 per unit. 1. How many units does Byron need to sell to meet this goal? _______ units 2. What is Byron's margin of safety in sales and in units when Byron sells 730 units? Margin of safety in sales $_________ Margin of safety in units ________ units 3. What is the degree of operating leverage when 730 units are sold? If required, round your answer to two decimal places. ___________
A) Calculate Economic Ordering Quantity ( EOQ ) if cost of carrying 1 unit in inventory = $24 total demand in units over planning period = 60,000 units ordering cost per order = $800 Common Stock A Common Stock B Probability Return Probability Return .30 11% .20 25% .40 15% .30 6% .30 19% .30 14% .20 22%
Based on your research of the market in the previous exercises, you have determined the market price for the items your department purchase is 15% below what you are being charged by department A of Marleys Manufacturing. How would you view this as a manager? What steps could you take to solve this discrepancy? What alternatives would you consider, assuming you had control over purchasing decisions?
Use the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Walgreenss Year +1 revenue growth rate, gross profit margin, and inventory turnover will be identical to Year 12. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Company’s purchasing cost and number of purchase orders.The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Intercept 15,021 (rounded to the nearest dollar)X variable 1 9.74 (rounded to the nearest cent) Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the vari-able rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchaseorders, what is the total estimated purchasing cost for that month? (Round your answer tothe nearest dollar.)3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year andexpects 5,340 purchase orders? What will estimated total purchasing cost be? (Round youranswer to the nearest dollar.) What is the total fixed purchasing cost? Why doesn’t it equalthe fixed cost calculated in Requirement 1?
Editing Voice Sensitvity Edtor 7. Suppose we have the following annual sales data for an automobile dealership: Year Sales Trend 2011 121 1 2012 187 2013 165 2014 134 2015 155 2016 167 6. 2017 200 7 2018 206 2019 221 2020 231 10 We want to forecast sales for 2021 and 2022 using either a simple trend model or a model using the RMSE measure discussed in lecture. Once this model has been determined, provide actual forecasts for 2021 and 2022. Report the two RMSE values in your submission along with the actual forecasts. Submit your Excel file used to create these answers. quadratic trend model. Use a within sample forecasting technique to determine the nonle become sick
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