How much should Douglas Boats expand

Assignment Help Accounting Basics
Reference no: EM132535809

Question - Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. These engines are shipped to Douglas in a ship- ping container of 100 cubic feet, and Douglas Boats keeps the warehouse full of these WM-4 motors. The warehouse can hold 5,000 cubic feet of boating supplies. Douglas estimates that the ordering cost is $10 per order, and the carrying cost is estimated to be $10 per motor per year. Douglas Boats is considering the possibility of expanding the warehouse for the WM-4 motors. How much should Douglas Boats expand, and how much would it be worth for the company to make the expansion? Assume demand is constant throughout the year.

Reference no: EM132535809

Questions Cloud

What is Ferns effective tax rate : Fern Co. has net income, before taxes, of $200,000, including $20,000 interest revenue from municipal bonds. What is Ferns effective tax rate
Component method and one of the other two methods : -In the World Pond Hockey tournament held in Plaster Rock, NB, a puck on the ice travels 20.0 m [25° W of N], gets deflected, and travels 30.0 m
How would such an education support the local community : What would you say to persuade the board that the arts are necessary for a child's education? How would such an education support the local community?
Describe some of the legal and ethical aspects : Describe some of the legal and ethical aspects associated with consent. What is the role of the organization with regards to consent?
How much should Douglas Boats expand : Douglas Boats is considering the possibility of expanding the warehouse for the WM-4 motors. How much should Douglas Boats expand
Effect of atomic number and mass density : - What the effect of atomic number and mass density of tissue on differential absorption.
Description of the elements of composition-line : What overall emotional and intellectual effect the performance or artwork had on you: the emotions you felt, what the experience made you think of
Find the magnitude and direction of the force : An electric field of magnitude 5.25 ? 105 N/C points due south at a certain location.
Explain the ethical and legal implications of the scenario : Explain the ethical and legal implications of the scenario you selected on all stakeholders involved, such as the prescriber, pharmacist, patient.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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