Stanley’s typists use 770 reams of paper per month, at a cost of $10 per ream....

Stanley’s typists use 770 reams of paper per month, at a cost of $10 per ream. He pays a fixed cost of $28 each time he orders paper. The carrying cost (per ream per year) is 35% of the purchase price. Stanley is currently ordering paper each month, with the number of reams used per month as the order quantity. How much would Stanley save each year, if he used the EOQ?

Solutions

Expert Solution

keosha answered 1 hour ago

Next > < Previous

Related Solutions

Suppose that the distribution of typing speed in words per minute (wpm) for experienced typists using...

Suppose that the distribution of typing speed in words per minute (wpm) for experienced typists using a new type of split keyboard can be approximated by a normal curve with mean 64 wpm and standard deviation 15 wpm. b. What is the probability that a randomly selected typists typing speeds is between 45 and 90 wpm? Round your answer to four decmial places. Would you be surprised to find a typist in tis pop. to excced 105 wpm? Suppose two...

Suppose that the distribution of typing speed in words per minute (wpm) for experienced typists using...

Suppose that the distribution of typing speed in words per minute (wpm) for experienced typists using a new type of split keyboard can be approximated by a normal curve with mean 68 wpm and standard deviation 17 wpm. What is the probability that a randomly selected typist's speed is at most 68 wpm? What is the probability that a randomly selected typist's speed is less than 68 wpm? What is the probability that a randomly selected typist's speed is between...

Price Market Quantity Demanded Social Quantity Demanded ($) (units per month) (units per month) 20 10...

Price Market Quantity Demanded Social Quantity Demanded ($) (units per month) (units per month) 20 10 20 18 20 30 16 30 40 14 40 50 12 50 60 10 60 70 b. Does this product have external benefits or external costs? External benefits c. How large ($) is that externality? ? per unit

Monthly fixed cost: 10 000,- Variable cost: 15,-/customer Volume: 1 500 customers per month Price: 25,-/customer...

Monthly fixed cost: 10 000,- Variable cost: 15,-/customer Volume: 1 500 customers per month Price: 25,-/customer When business started, there came only 800 customers/month. However, fixed cost was only 5000,-. a)Break-even? b)Profit? c)How much should the price be to reach the original target in this situation with 800 customers?

An investment project provides cash inflows of $770 per year for 13 years. a. What is...

An investment project provides cash inflows of $770 per year for 13 years. a. What is the project payback period if the initial cost is $1,540? b. What is the project payback period if the initial cost is $5,082? c. What is the project payback period if the initial cost is $10,780?

Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame....

Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame. For the month of April, the company planned for activity of 882 frames, but the actual level of activity was 878 frames. The actual supplies cost for the month was $13,500. The supplies cost in the flexible budget for April would be closest to:

1. A fresh produce distributor uses 770 non-returnable packing crates a month, which it purchases at...

1. A fresh produce distributor uses 770 non-returnable packing crates a month, which it purchases at a cost of $6 each. The manager has assigned an annual holding cost of 28 percent of the purchase price per crate. Ordering cost is $32 per order. Currently the manager orders 770 crates at a time. How much could the firm save annually in ordering and holding costs by using the EOQ? (Round the final answer to 2 decimal places.) Annual savings A...

A company has estimated fixed cost of $30,000 per month for 0 - 600,000 apples per...

A company has estimated fixed cost of $30,000 per month for 0 - 600,000 apples per month. The apples are sold in packs of 10 sold for $8 per pack. At 100% capacity the apples have a total variable cost of $30000 per month. 1) What is the yearly profit at the max capacity? 2) What is the break even production amount?

The total fixed cost is $60 per month. (a) If the price pervisit is $60,...

The total fixed cost is $60 per month. (a) If the price per visit is $60, at what level of visits will the maximum profit position be? (b) What are the profits at this level?(c) What is the quantity supplied? (d) If the total fixed cost increases to $80 and the price per visit is $60, what is the quantity supplied (assuming maximizing profits)?quantity per visits supplied:1,2,3,4,5,6,total variable cost: 20,50,90,140,210,290

Compute the cost per equivalent unit for direct materials and conversion for the month.

Perrette Motor Company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt engine has a 100,000-mile warranty and is purchased by auto shops, large motor pools in companies and governmental units, and some individual auto owners. The plant in Dayton, Ohio, specializes in the Ford V6 engine. Approximately 1,140 to 1,340 engines are rebuilt each month, and the costs of the plant are assigned to monthly production using weighted-average process costing. The current...

Subjects