Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $25 and are sold for $35. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $572,000 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year.
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Economic order quantity determines the optimum number of units that reduce cost per unit and…
Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…
A: Break Even Point: Break Even Point is defined as the level where there is no profit and loss. It is…
Q: Baguio Coat Company estimates that 60,000 special zippers will be used in the manufacture of men's…
A: Opportunity cost - This is the cost which company can gain if the alternative option is selected.…
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Step 1 Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Material Costing - It refers to the systematic control of storing, purchasing, and consumption of…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 THE ANNUAL INVENTORY RELATED COST IS THE SUM OF THE ANNUAL HOLDING AND ORDERING COST.…
Q: break-even point?
A: Break even point in units = Fixed cost / Contribution margin per unit
Q: Neptune Company has developed a small Inflatable toy that it is anxlous to Introduce to Its…
A: Formulas:
Q: Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to…
A: Profit = {Unit sales ( Sales per unit - Variable per unit ) } - Fixed cost At present Unit Sales =…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: 22. Step 1: Calculate the order quantity The order quantity is equal to the # Days Inventory x Daily…
Q: Winnebagel Corp. currently sells 29,200 motor homes per year at $79,000 each and 8,200 luxury motor…
A: Annual sales figure when evaluating this project = Sales revenue from new portable campers +…
Q: Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to…
A: The price of selling is the amount at which consumers are required to pay for a manufactured good or…
Q: Caroline, the owner of Caroline’s Boutique, estimates that she will sell P300,000 worth of certain…
A: When a firm orders items from the vendor on regular basis, it has to incur various types of costs…
Q: Smith Chemical has spent $244,000 to refine 73,000 gallons of acetone, which can be sold for $2.40 a…
A: Sales or Process Further Decision is the option to sell a product now or process it further to earn…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Reorder point is the point where the inventories are manufactured and restored again. It shows the…
Q: Gazapizm Corporation is a manufacturing company and has estimated that they need $2,400,000 to put a…
A: Firm requires funds for new projects or existing operations. Firm can arrange the funds through long…
Q: Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month…
A: We have to find out net income per month and than find out number of months required to recover…
Q: Lila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who…
A: Economic Order Quantity(EOQ) shows quantity of goods at which ordering cost and holding/carrying…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: ITEM 1 Reorder Point = 4,200 units ITEM 2 Lead Time Demand = 2,500 units ITEM 3 Safety Stock = 1,700…
Q: Determine the ordering, handling, and total inventory costs for the EOQ
A: Hi student Since there are multiple requirements, we will answer only first three requirements.
Q: Winnebagel Corp. currently sells 21,000 motor homes per year at $59,00O each, and 7,500 luxury motor…
A: Solution-To evaluate the project , the annual sales figure includes the sales of new camperes,the…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Given information: Working days = 250 The average number of boxes sold per day = 500 Occasionally…
Q: Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses…
A: Economic order quantity is method of calculating ideal lot to order for inventory at a time to…
Q: der. Stora
A: Given: To calculate the inventory of the company as,
Q: Big Red Motors, Inc., employs 15 sales personnel to market its line of luxury automobiles. The…
A: If a business has two alternatives of doing something, then it should select that alternative which…
Q: Each year the Alma Vacuum Company (AVC) manufactures 35,000 of its Supe Duper Dirt Grabber carpet…
A: Option D is the Correct Answer i.e 10,000
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: “Since you have posted a question with many sub-parts, we will solve first three sub-parts for you.…
Q: The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The…
A: no of lots=4 cost per order=15 Total cost=inventory cost+order cost+carrying cost…
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The reorder point refers to the level of inventory at which the stock is purchased to be sold in the…
Q: Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer.…
A: Ordering Cost is a type of expenditure used in computation of Economic Order Quantity (EOQ). It…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ helps in determining the level of quantity at which an entity can balance its ordering &…
Q: The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in…
A: a)
Q: A plastic manufacturing company that makes four major products seeks to expand its operations in the…
A: Note: I am solving the first three subparts. Please repost the remaining subparts separately The…
Q: A plastic manufacturing company that makes four major products seeks to expand its operations in the…
A: Sometimes a company needs to select a operating machine from the various option available to it. The…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 # CALCULATION OF FORECASTED HOLDING COST/CARRYING COST- A-CALCULATION OF ORDER…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The EOQ is a company's optimum order quantity that reduces overall costs associated with purchasing,…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ- It is an sophisticated or ideal quantity that a company should acquire to minimize its cost of…
Q: Neptune Company has developed a small Inflatable toy that It Is anxlouUs to Introduce to Its…
A: Break-even point: A breakeven analysis is a calculation of the point at which revenue equals…
Q: A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year, Each bottle costs…
A: Given, Annual Demand = 10,000 bottles Ordering Cost = $125 per order Holding Cost = $10
Q: What are the annual sales for the new portable camper? (Do not round intermediate calculations and…
A: Annual sales for the new portable camper = Sales units* Selling Price per unit Annual increased…
Q: Solar Shade Inc. currently sells 40,000 basic solar shade devices per year at $60,000 each, and…
A: To calculate the annual sales figure, we will have to first consider changes in unit sold of basic…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION- FORMULAS- 1-REORDER POINT=MAXIMUM DAILY DEMAND…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $25 and are sold for $35. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $572,000 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year.Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $30 and are sold for $40. Glass pitchers cost $26 and are sold for $47. All other costs are fixed at $280,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year. Crane, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $28. What would be the new contribution margin per unit if managers switched to the new supplier? What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)
- Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $30 and are sold for $40. Glass pitchers cost $26 and are sold for $47. All other costs are fixed at $280,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year. How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.)An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. What is the economic order quantity? Based on your answer above, how many orders will be placed per year using the EOQ? Determine the ordering, handling, and total inventory costs for the EOQ. Determine the effective annualized cost of financing for the following credit terms, assuming that (1) discounts are not taken, (2) accounts are paid at the end of the credit period, and (3) use 365=day year: a. 1/10, n/30; b. 3/10, n/30; c. 3/10, n/60; d. 2/10, n/90Calla Company produces skateboards that sell for $50 per unit. The company currently has the capacity to produce 90,000 skateboards per year but is selling 80,000 skateboards per year. Annual costs for 80,000 skateboards follow.
- A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Curate Furniture approached Jansen about buying 1,200 shelves for bookshelves it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shelf. The $1.50 per shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320,000. However, the $1.50 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jensen accepts the special order?An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. What is the economic order quantity?
- Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the total sales revenue at the break-even point? a.$411,250 b.$140,000 c.$665,000 d.$253,700 e.$1,076,250A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. The annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. a) If the order quantity is 1000 gallons, what is the average inventory? b) If the order quantity is 1500 gallons, how many orders are placed each year? c) What is the EOQ quantity? d) If the order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for the EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost? f)If orders must be in integer multiples of 1000 gallons, how much should be ordered to minimize ordering and holding costs PER GALLON? g) A 3% purchase price discount is given if orders are for 8000 gallons or more. What would total annual costs (purchasing, ordering, and holding) be using this discount?Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shelf. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320,000. However, the $1.50 packaging cost will not apply in this case.The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order?