+1-415-670-9189
info@expertsmind.com
Av city stocks and sells a particular brand of laptop it
Course:- Accounting Basics
Reference No.:- EM13601448




Assignment Help
Assignment Help >> Accounting Basics

AV City stocks and sells a particular brand of laptop. It costs the firm $625 each time it places an order with the manufacturer for the laptops. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500 units, with a constant demand rate throughout the year. Orders are received within minutes after placement from a local warehouse maintained by the manufacturer. The store policy is never to have stockouts of the laptops. The store is open for business every day of the year except Christmas Day. Determine the following:

• a.Optimal order quantity per order
• b.Minimum total annual inventory costs
• c.The number of orders per year
• d.The time between orders (in working days)

The Sofaworld Company purchases upholstery material from Barrett Textiles. The company uses 45,000 yards of material per year to make sofas. The cost of ordering material from the textile company is $1,500 per order. It costs Sofaworld $0.70 per yard annually to hold a yard of material in inventory. Determine the optimal number of yards of material Sofaworld should order, the minimum total inventory cost, the optimal number of orders per year, and the optimal time between orders.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Company X sells standard lawn mowers to Biggy Hardware (BH) for $100. BH is Company X's largest customer. Company X offers BH the following discounts based on purchases in a c
Which of the following internal control procedures would minimize the misuse of corporate credit cards?a) Establishing a restrictive policy regarding the issuance of the cards
Common stock $15,600, Dividends $7,000, Service Revenue $37,000, Salaries and Wages Expense $16,000, Insurance Expense $2,000, Rent Expense $4,000, Supplies Expense $1,500,
A corporation issues $100,000, 10%, 5-year bonds on January 1, 2009, for $104,200. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straigh
Darron Co. was formed on January 1, 2011 as a wholly owned foreign subsidiary of a U.S. corporation. Darron's functional currency was the stickle (ยง). The following transact
ABC company pays a sales commission of 5% on each unit sold. If a graph is prepared with the vertical axis representing per-unit cost and the horizontal axis represented uni
Determine the depreciation and book value for each of the two investment groups for each year. Determine the gain/loss for tax purposes If the Group 5 and Group 7 assets are
Describe how software companies like PeopleSoft treat software development costs differently from the typical GAAP treatment of research and development costs in other indus