A mail-order house uses 15,750 boxes a year. Carrying costs are 60 cents per box a year and ordering costs are $96. The following price schedule applies.
| Number of Boxes | Price per Box |
|---|---|
| 1,000 to 1,999 | $1.25 |
| 2.000 to 4,999 | 1.20 |
| 5,000 to 9,999 | 1.15 |
| 10.000 or more | 1.10 |
a. Determine the optimal order quantity (Round your answer to the nearest whole number)
Optimal order quantity = _______ boxes
b. Determine the number of orders per year. (Round your answer to 2 decimal places.)
Number of order _______ per year
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.80 per stone for quantities of 600 stones or more, $9.50 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm operates 184 days per year. Usage rate is 25 stones per day, and ordering costs are $48.
a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Round your intermediate calculations and final answer to the nearest whole number.)
b. If annual carrying costs are 27 percent of unit cost, what is the optimal order size? Round your intermediate calculations and final answer to the nearest whole number.)
c. If lead time is 7 working days, at what point should the company reorder?
In: Other
Category Prior Year Current Year
Accounts payable ??? ???
Accounts receivable 320,715 397,400
Accruals 40,500 33,750
Additional paid in capital 500,000 541,650
Cash 17,500 47,500
Common Stock 94,000 105,000
COGS 328,500 428,048.00
Current portion long-term debt 33,750 35,000
Depreciation expense 54,000 54,731.00
Interest expense 40,500 41,017.00
Inventories 279,000 288,000
Long-term debt 339,670.00 401,877.00
Net fixed assets 946,535 999,000
Notes payable 148,500 162,000
Operating expenses (excl. depr.) 126,000 161,905.00
Retained earnings 306,000 342,000
Sales 639,000 850,323.00
Taxes 24,750 48,686.00
What is the firm's current year net profit margin?
In: Finance
Prepare an amortization schedule for a three-year loan of $24,000. The interest rate is 16 percent per year, and the loan calls for equal principal payments.
In: Finance
A stock is expected to pay a dividend of $1.25 at the end of the year (i.e., D1 = $1.25), and it should continue to grow at a constant rate of 7% a year. If its required return is 12%, what is the stock's expected price 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
In: Finance
In: Finance
In: Finance
In: Finance
In: Finance
Equipment is purchased for $ 250,000 in year 0 and is expected to sell for $ 25,000 after 5 years of use. Suppose the company estimates income and expenses of the equipment for the following first year of operation: Income $ 600,000, Expenses $ 260,000, Depreciation $ 45,000. If the company pays taxes at a rate of 35%, what is the after-tax cash flow for the first year?
In: Economics
In: Economics