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

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Indicate the effect of each of these errors on working capital, current ratio (assume that the current ratio is greater than 1), retained earnings, and net income for the cu
Under SFAS 52, when the current rate method is used, how are translation adjustments treated in the consolidated financial statements?
Prepare all journal entries in good form for the two month period from November 1 through December 31, 2015. Please prepare any adjusting journal entries in chronological or
Calculate the ROI for Hercules. Use operating income and net book value of assets as the measures for income and investment respectively.
On November 8, 2003, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the comb
A new wholesaler has offered to buy 17,000 packages for $3.47 each. These markers would be marketed under the wholesaler's name and would not affect Cayman Products' sales t
Was ABT organized as a partnership or corporation? Explain the basis for your answer. Did you include the transaction between the two stockholders event (c) in the spread-shee
What is an example of a significant accounting estimate? What is the importance of these estimates? How do ethics play into the decision-making process? Which financial stat