Compute the inventory costs if pc order

Assignment Help Finance Basics
Reference no: EM131393811

PC Calculators sells calculators that it purchases for $15 each. It costs PC $60 each time calculators are ordered, and carrying costs are 20 percent of the calculator's purchase price. Annual demand is 100,000 calculators.

(a) Compute the EOQ.

(b) Compute the inventory costs if PC orders

(i) the EOQ amount,

(ii) 1,000 calculators, and

(iii) 2,500 calculators.

Reference no: EM131393811

Questions Cloud

Calculate the cross-price elasticity of demand : calculate the cross-price elasticity of demand. calculate the income elasticity of demand. are the two goods compliments or substitues?
Compare two distinct concepts from the world of physics : Pick two distinct concepts from the world of physics. In a two page paper, compare and contrast the concepts with the end goal of making connections to your final course project
What are advantages and disadvantages of the residual policy : FIN521- What are the advantages and disadvantages of the residual policy? What results have empirical studies of the dividend theories produced? How does all this affect what we can tell managers about dividend payouts?
Shift the demand curve for a? good : Which of the following will shift the demand curve for a? good? For a perfectly competitive? firm, at profit maximization
Compute the inventory costs if pc order : PC Calculators sells calculators that it purchases for $15 each. It costs PC $60 each time calculators are ordered, and carrying costs are 20 percent of the calculator's purchase price. Annual demand is 100,000 calculators.
Use the dirt model in labor economics : Use the "Dirt" model in labor economics to explain how a compensating wage differential works to induce people to take on dirty/dangerous/demeaning jobs. Why does this model imply that people with similar tastes tend to work together?
How many orders should m&m place each year : Media Moguls (M&M) normally sells 240,000 units per year. It costs M&M $52 to purchase each unit, the fixed cost of ordering is $260, and the carrying costs equal 15 percent of the unit's purchase price.
Approximately what exchangerate will the returns : Assume that the U.S. interest rate is 5%, the European interest rate is 2%, andthe future expected exchange rate in 1 year is $1.224. At approximately what exchangerate will the returns between the United States and Europe be equalized?
The main purpose of antitrust policy : A "winner-takes-all market" like that for entertainers exhibits huge differences between the top talents and the next tier of artists in all of the following aspects, except: The main purpose of antitrust policy is to:

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What is the projected operating cash flow for this project

The fixed costs for this project are $42,000, depreciation is $11,000 a year, and the tax rate is 33 percent. What is the projected operating cash flow for this project?

  People claim that playing the stock market

Many people claim that playing the stock market is like gambling. How is this true or not true? What should be one's approach to the stock market?

  Define bootstrap financing

What is bootstrap financing it? Why don't all firms use bootstrap financing? Are there any dangers with this approach?

  How much cash was collected from making sales and collecting

Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for cash. How much cash was collected from making sales and collecting accounts receivable?

  The concept of current liabilities

The current liability section of the balance sheet lists the liabilities that are due within the next 12 months. Reflecting on your current financial situation, apply the concept of current liabilities. What does this analysis tell you about you..

  Caculate the value of the share of xyz if the company has

xyz has a debt of 27500000 and is expected to produce fcf of 11750000 next year caculate the value of the share of

  Computing mape

The predicted value of the Mexican peso was $0.13 and the realized value was $0.14. In period 2, the predicted value was $0.14 and the realized value was $0.12.

  What is jlj leverage ratio

JJ's Finance Emporium most recent financial statements showed net income of $3.33 per share and the ROE of JJ's was 20%. The dividend payout ratio was 40%. Find the growth rate (g) of JJ's.

  Discuss the overall purpose people have for investing

Discuss the overall purpose people have for investing

  What is the roe under each alternative

Mos Company is attempting to establish a current assets policy. Fixed assets are $1M and the firm intends to maintain a 50% debt to assets ratio. Mos has no current liabilities. The interest rate is 8% on all debt.

  Objectives of sec research analysis

1. Classify companies into service, merchandising, or manufacturing industry using the 10-K. 2. Analyze the annual financial statements to differentiate among the three different industries.

  Importance of the risk and return balance

Critically reflect on the importance of the risk and return balance.  Consider the following:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd