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.

A firm manufactures and sells high quality business printers and ink toners. Each printer sells for $650 and each toner for $100. The average user keeps the printer for 5 years and consumes 4 toners every year. In response to a recent significant drop in printer sales (which will reduce future toner sales as well) the firm wants to lower the printer price to $500. Assume that income from toner sales occurs at year-end and the firm’s cost of capital is 10%. How much of an increase is needed in the toner price to cover the loss in printer price?

A manufacturing firm has decided to plan for the purchase of a pickup truck several years from now. At that time, the company estimates that they will need $72,000 and has decided to set aside a uniform amount of money at the end of every month to save up for this need. It believes it is possible to set aside $1,180 per month at 9% compounded monthly interest. It wishes to know how long it will take to save $72,000 and how sensitive this result is to a 5% and 10% increase- or decrease in both the amount saved per month and in the interest rate., a) As a base case, determine how many months it will take to save $72,000. b) Construct a sensitivity graph to illustrate how the number of months change as a function of % change. c) This plan is most sensitive to which variable?

A Show Room of cars purchases new cars each year for use in agency. The cars cost agency $ 22,000 new. They are used for 3 years after that they are sold for only 10% of the purchasing price. The cost of operating cars is $ 0.22 per mile. Cars are leased for a fee of $ 0.35 per mile. What will be profit if cars are leased for 50,000 miles. Determine the break even point of the function.

The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $200 per order to cover the expenses of delivering and transferring the fuel to MBC's storage tanks. The lead time for a new shipment from American Petroleum is 10 days; the cost of holding a gallon of fuel in the storage tanks is $0.04 per month, or $0.48 per year; and annual fuel usage is 120,000 gallons. MBC buses operate 300 days a year. What is the optimal order quantity for MBC?Q* = fill in the blank 1 How frequently should MBC order to replenish the gasoline supply?fill in the blank 2 orders per year The MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expending the capacity of its storage tanks?Metropolitan Bus Company   the capacity of its storage tanks. What is the reorder point?r = fill in the blank 4 gallo

Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6,500 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%? Multiple Choice $49,904 $51,036 $44,298 $43,298 $50,776

APQ Company currently sells a piece of equipment for $150 per unit.  It plans on lowering the price of the unit to $119 per unit.  The cost of goods for each unit is consistent each year, at $52 per unit.  The company expects to sell 100,000 units in the current year. Suppose that if APQ drops the price on the equipment immediately, it can increase sales over the next year by 30% to 130,000 units.  Will this price decrease have a positive or negative impact on the company's EBIT?  What will be the dollar value of the incremental impact of this price drop on the firm's EBIT? Will this have a positive or negative impact on the EBIT for the company?  What will the dollar value of the incremental impact of the price drop be for the company? (Enter a negative for a loss, positive for a gain; round your answer to the nearest whole dollar.)

Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor, Almos Garment Corp. If Almos' operating cost is $38,000 per year for years 1 and 2 and then it increases by 5% per year through year 10, what is the year-zero present worth of the machine operating cost at an interest rate of 14% per year? The present worth of the machine operating cost is determined to be $

VITRAN Bus Services purchases diesel fuel from Domino Gas Supply. In addition to fuel cost, Domino Gas Supply charges VITRAN Bus Services $250 per order to cover the expenses of delivering and transferring the fuel to VITRAN Bus Services storage tanks. The lead time for new shipment from Domino Gas Supply is 10 days, the cost of holding a gallon of fuel in the storage tanks is $0.04 per month, or $0.48 per year and the annual usage of fuel is 150,000 gallons. VITRAN Bus Services buses operate 300 days a year. The VITRAN Bus Services storage tanks a capacity of 15,000 gallons. Should VITRAN Bus Services considers expanding the capacity of its storage tanks? What is the reorder point?