How many orders should m&m place each year

Assignment Help Finance Basics
Reference no: EM131393809

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.

(a) What is the EOQ?

(b) How many orders should M&M place each year?

Reference no: EM131393809

Questions Cloud

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:
Is this new customer-based model necessary to improve : Is this new customer-based model necessary to improve business today? Explain why or why not.What are the similarities proposed by this model to strategic marketing management as presented in the AMA definition and text?What are the differences betw..
Contributed to growing income inequality : The Labor Management Reporting and Disclosure Act was created in an effort to protect union leaders and members from illegal practices committed by their employers. The ultimate power of a union is the willingness of its members to __________ if no a..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is forward premium or discount on the 180 day euros

An investor wishes to buy euros spot ( at $ 1.3480) and sell euros forward for 180 days (at $1.3526). a- what is the swap rate on euros? b- what is the forward premium or discount on the 180-day euros?

  Determine the value of these bonds

The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $1000 denominations with an annual coupon interest rate of 5%. Determine the value of these bonds today to an investor who requires a 10% return on his inv..

  What value should he place on this opportunity today

Jim Nance has been offered an investment that will pay him $500 three years from today. If his opportunity cost is 7% compounded annually, what value should he place on this opportunity today? What is the most he should pay to purchase this payment t..

  Sdi inc has net working capital of 1350 current

sdi inc. has net working capital of 1350 current liabilities of 4290 and inventory of 1820. what is the current ratio?

  Who issues commercial paper and for what purpose

Who issues commercial paper and for what purpose?

  How much cashflow is needed before tax and interest

How much cashflow is needed before tax and interest to satisfy debt holders and equity holders if tax rate is 40%, there is $10 million in Common stock requiring a 12% return and $6 million in bonds requiring an 8% return?

  Zenex inc sells 250000 of its accounts receivable to

zenex inc. sells 250000 of its accounts receivable to factors at a 3 percent discount. the firms average collection

  What was the stock price following the split

Whited Products recently completed a 4-for-1 stock split. Prior to the split, its stock sold for $120 per share. If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price foll..

  Would you rather own stocks or bonds of a corporation

Would you rather own the stocks or bonds of a particular corporation if you believed that the corporation was going to earn exceptional profits next year?

  Capital budgeting and capital structure

Capital Budgeting and Capital Structure

  Determine the theoretical value of ge stock

Suppose you wish to determine the theoretical value of GE stock currently paying an annual dividend of $0.92. You anticipate the dividend will grow in the following pattern: 10% for the next 5 years

  From the following calculate the current ratio from the

a. from the following calculate the current rationbsprscash-in-hand250000sundry debtors150000stock-in-trade200000sundry

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