A gift shop expects to sell 400wind chimes during the next year. It costs $1.20 to...

A gift shop expects to sell 400wind chimes during the next year. It costs $1.20 to store one wind chime for one year. There is a fixed cost of $⁢15 for each order. Find the lot size and the number of orders per year that will minimize inventory costs.

Solutions

Expert Solution

milcah answered 1 year ago

Next > < Previous

Related Solutions

Farrow Co. expects to sell 400,000 units of its product in the next period with the...

Farrow Co. expects to sell 400,000 units of its product in the next period with the following results. Sales (400,000 units) $ 6,000,000 Costs and expenses Direct materials 800,000 Direct labor 1,600,000 Overhead 400,000 Selling expenses 600,000 Administrative expenses 1,028,000 Total costs and expenses 4,428,000 Net income $ 1,572,000 The company has an opportunity to sell 40,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit...

1) IBM expects to pay a dividend of $5 next year and expects these dividends to...

1) IBM expects to pay a dividend of $5 next year and expects these dividends to grow at 77% a year. The price of IBM is $85 per share. What is IBM's cost of equity capital? 2) Since your first birthday, your grandparents have been depositing $1,200into a savings account on every one of your birthdays. The account pays 9% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings...

During 2021, Beta Corporation expects to sell $50 in products and services.

During 2021, Beta Corporation expects to sell $50 in products and services. It expects its accounts receivable to decrease by $10. It plans to retire some manufacturing equipment and predicts it can get $15 for it. In addition, Beta Corporation has forecasted the following financial items for 2021:Depreciation expense $5Selling & administrative expense $6Capital expenditures $13Cost of goods sold expense $40Dividends to shareholders $3 Based on the above, what is Beta Corporation’s total forecasted net cash burn?

Simple Metal Works, Inc. will manufacture and sell 250,000 units next year. Fixed costs will total...

Simple Metal Works, Inc. will manufacture and sell 250,000 units next year. Fixed costs will total $330,000, and variable costs will be 60 percent of sales. a. The firm wants to achieve a level of earnings before interest and taxes of $250,000. What selling price per unit is necessary to achieve this result? b. Set up an analytical income statement to verify your solution to part

Simple Metal Works, Inc. will manufacture and sell 150,000 units next year. Fixed costs will total...

Simple Metal Works, Inc. will manufacture and sell 150,000 units next year. Fixed costs will total $260,000, and variable costs will be 55 percent of sales. a. The firm wants to achieve a level of earnings before interest and taxes of $300,000. What selling price per unit is necessary to achieve this result? b. Set up an analytical income statement to verify your solution to part (a).

Ronnie, who is in the 33% tax bracket this year, expects to retire next year and...

Ronnie, who is in the 33% tax bracket this year, expects to retire next year and be in the 25% tax bracket. He plans to donate $50,000 to his church. Because he will not have the case available until next year, Ronnie donates land (long term capital gain property) with a basis of $10,000 and fair market value of $50,000 to the church in December of the current year. He reacquires the land for $50,000 in February of next year....

A Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The...

A Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The firm actually sells $3,900,000 worth of goods. It is also planning on purchasing $2,000,000 in new equipment during the year. At the beginning of the year, the company has $400,000 in inventory in its warehouse. Answer the following based on the information above and show all your work: a) Calculate desired investment b) Calculate realized investment c) Calculate desired end of the year inventories...

Question Farrow Co. expects to sell 150,000 units of its product in the next period with the following results.

Question Farrow Co. expects to sell 150,000 units of its product in the next period with the following results.Sales (150,000 units) $2,250,000Costs and expensesDirect materials . 300,000Direct labor 600,000Overhead . 150,000Selling expenses . 225,000Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,500Total costs and...

Vaviano Ltd expects to sell 34,000 units of finished goods over the next 6-month period. The...

Vaviano Ltd expects to sell 34,000 units of finished goods over the next 6-month period. The company has 10,000 units on hand and its managers want to have 14,000 units on hand at the end of the period. To produce one unit of finished product, two units of direct materials are needed. Vaviano has 100,000 units of direct material on hand and has budgeted for an ending inventory of 110,000 units. What is the amount of direct material to be...

A local gift shop is trying to determine how many photos frames to order. The shop...

A local gift shop is trying to determine how many photos frames to order. The shop feels it will sell approximately 800 photos frames in the next year at a unit price of R18.00.The wholesale price that the store pays per photo frame is R12.00. The cost of carrying one photo frame is estimated at R1.60 per year, while ordering costs are estimated at 825.00 per batch ordered. REQUIRED (a) Explain the meaning of economic order quantity (EOQ) and reorder...

Subjects