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A hospital must order the drug Porapill from the manufacturer of the drug. It costs $500 to place an order. Annual demand for the drug is normally distributed with mean 10,000 and standard deviation 3000, and it costs $5 to hold one unit in inventory for one year. (A unit is a standard container for the drug.) Orders arrive one month after being placed. Assume that all shortages are backlogged.
a. What (R,Q) policy should the company use if it wants to meet 95% of all customer demand from existing inventory?
b. Suppose the company could pay C dollars per year to decrease its lead time per order from one month to half a month. What is the most it would be willing to pay to do this (and still have a 95% service level)?
1. Consider the prices of the following three Treasury issues as of February 24, 2012
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What is the purpose of GAAP in the accounting cycle? Is it possible to deviate from GAAP and still prepare financial statements?
assume that the average firm in your company industry is expected to a constant rate of 6 and that the dividend is 7.
NWA's Financial Statements contain the following information: Cash $300,000 Accounts Payable $500,000 Accounts Receivable $650,000 Accrued Expenses $150,000 Inventory $800,000 Long Term Debt $1,000,000 Marketable Securities $100,000 Required:
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A manufacturing company incurs direct labor costs as it transforms direct material into marketable products. The cost of the direct labor will be treated as a period cost on the income statement when?
gregs bicycle shop has the following transactions related to its top-selling mongoose mountain bike for the month of
Topo Gigo Imports, Ltd., located in San Francisco, California, is an importer and distributor of a leading Japanese-made desktop dry copier.
Compute the amount of under-applied or over-applied manufacturing overhead. Clearly indicate whether the overheadis under-applied or over-applied.
a company purchased merchandise inventory at a cost of 4300 with credit terms 315 net 45. if the company elects to pay
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