vestments. The purchase-order lead time is 2.5 weeks. Snacku ompany sells 125 lens per week. The following data is available: Ordering costs per purchase order P 21.25
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What is the economic-order quantity (rounded to nearest whole lens)?
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- Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 200 per week, at $35 per lens. Blitz covers all shipping costs. Vision earns 25% on its cash investments. The purchase-order lead time is 2.5 weeks. Vision sells 225 lenses per week. The following data are available: Relevant ordering costs per purchase order $41.25 Relevant insurance, materials handling, breakage, and so on, per year $ 4.50 What is the economic order quantity for Vision? a. 328 lenses b. 457 lenses c. 161 lenses d. 266 lensesVita Company sells glasses. Benz Company manufactures special glass lenses. Vita orders 16,640 lenses per year, 320 per week, at $40 per lens. Benz covers all shipping costs. Vita earns 22% on its cash investments. The purchase-order lead time is 3.0 weeks. Vita sells 315 lenses per week. The following data are available: Relevant ordering costs per purchase order $47.25 Relevant insurance, materials handling, breakage, and so on, per year $5.50 What is the reorder point? a. 1318 lenses b. 1605.0 lenses c. 660 lenses d. 945.0 lensesPT. AAH is currently is selling cooking oil for IDR 15.000/litre. Sales (all on credit) last year were recorded at 2.400.000 unit. Variable cost per unit is IDR 9.000/litre. The firm total fixed cost is IDR. 12.000.000.000. The firm is considering changing its credit policy. Assumption: 1 year = 360 days. PT. AAH initiate cash discount program, changing its credit terms from net 30 to 4/10 net 30. This change is expected to reduce the average collectionperiod from 40 days to 25 days. The sales unit is expected to increase 5% from the current level. PT. AAH estimates 85% of its customer will take the discount. The level of bad debt percentage will be decreasing from 2% to 0.5%. The cost of investment in Account Receivable is 17%. Should PT. AAH change its current account receivable policy?Explain your answer
- Ndapandula Investment CC sells about 12 000 bags of poulty grain per year. The Holding costs are N$ 50.00 per bag per year, and the Ordering costs are about N$ 100.00 per order. The Investment company operates 280 days per year. Determine: I. The optimal economic order quantity. II. The total annual inventory costs III. If the demand increases to 13 000 bags per year, what will the total annual inventory costs amount to?Umbridge Purses Unlimited sells purses with a sales price of $25.00 each. Each purse costs the company $20.00 to produce, and the store incurs a total of $210,000 in fixed costs each year. What is the yearly breakeven point in units? Select one: O O C a. 10,500 purses b. 21,000 purses c. 8,400 purses d. 42,000 purses e. None of these options are correct.Locust Software sells computer training packages to its business customers at a price of $101. The cost of production (in present value terms) is $99. Locust sells its packages on terms of net 30 and estimates that about 7% of all orders will be uncollectible. An order comes in for 30 units. The interest rate is 1.3% per month. Required: a-1. Calculate the profit or loss if this is a one-time order and sale will not be made unless credit is extended a-2. Should the firm extend credit if this is a one-time order? b. What is the break-even probability of collection? c-1. Now suppose that if the customer pays this month's bill, they will place an identical order in each month indefinitely and can be safely assumed to pose no risk of default.Calculate the present value of the sale. c-2. Should credit be extended? d. What is the break-even probability of collection in the repeat-sales case? Complete this question by entering your answers in the tabs below. Req A1 A2 and Req C1 C2 and B D…
- Locust Software sells computer training packages to its business customers at a price of $101. The cost of production (in present value terms) is $99. Locust sells its packages on terms of net 30 and estimates that about 7% of all orders will be uncollectible. An order comes in for 30 units. The interest rate is 1.3% per month. Required: a-1. Calculate the profit or loss if this is a one-time order and sale will not be made unless credit is extended a-2. Should the firm extend credit if this is a one-time order? b. What is the break-even probability of collection? c-1. Now suppose that if the customer pays this month's bill, they will place an identical order in each month indefinitely and can be safely assumed to pose no risk of default.Calculate the present value of the sale. c-2. Should credit be extended? d. What is the break-even probability of collection in the repeat-sales case? Complete this question by entering your answers in the tabs below. Req A1 A2 and Req C1 C2 and в D…TTT Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag=P2.50 Purchase cost/bag =P1.50Ordering cost =P5.40/orderCarrying cost=20% of unit costOperating days per year=250Ave. lead time on purchases=6 daysMaximum lead time=13.5 days Compute the reorder point for TTT Inc.Tool Mart sells 1,400 electronic water pumps every year. These pumps cost $54.30 each. If annual inventory carrying costs are 12% and the cost of placing an order is $90. What is the firm's EOQ?
- A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost is $10, ordering cost is $30, and the cost of carrying inventoryis 20%. The supplier offers a discount of 3% on orders of 1000 units or more. Whatwill be the saving (loss) of accepting the discount?Q. Samara Company is the exclusive distributor for a revolutionary bookbag. The product sells for $60 per unit and has a CM ratio of 40%. The company’s fixed expenses are $360,000 per year. The company plans to sell 17,000 bookbags this year. Required:Using the equation method:a. What is the break-even point in units and in sales dollars?b. What sales level in units and in sales dollars is required to earn an annual profit of $90,000?Equate Inc. sells products with a cost of $25,000 during the year to customer for $55,000. It is Equate’s policy to accept returns up to 60 days after the date of purchase. Equate estimates that there is a 60% probability that returns will be 3% of sales and a 40% probability that returns will be 2.5% of sales. What is the transaction price under a) expected value method b) most likely amount method? Choices: A: $53,460 B: $53,350 A: $53,350 B: $53,460 A: $53,460 B: $54,450 A: $54,450 B: $53,460 A: $53,350 B: $53,350
