What do your answers illustrate about the eoq

Assignment Help Financial Management

Reference no: EM132028470

Tiger Corporation purchases 1,180,000 units per year of one component. The fixed cost per order is ?$22

The annual carrying cost of the item is 26.1?% of its ?$1.77 cost.

a. Determine the EOQ if (1) the conditions stated above? hold, (2) the order cost is zero rather than ?$22 and? (3) the order cost is ?$22 but the carrying cost is ?$0.01

b. What do your answers illustrate about the EOQ? model? Explain.

Reference no: EM132028470

Questions Cloud

What would be the selling price today of a coupon : Three zero coupon risk-free discount bonds of one, two and three year term to maturity are selling for, respectively, $950, $890 and $800.

Determine the amount of capital gain or loss : Based on the information provided, determine the amount of capital gain or loss Mr. Mann incurred through this transaction

What is the pre-money valuation for the series d funding : You invested $114,000 of your own money and received 5.7 million shares of Series A preferred stock.

What is the debt-equity ratio : Three Piggies Enterprises has no debt. Its current total value is $76.4 million. Assume the company sells $35.2 million in debt.

What do your answers illustrate about the eoq : Determine the EOQ if (1) the conditions stated above? hold, (2) the order cost is zero rather than ?$22 and? (3) the order cost is ?$22 but the carrying cost is

Prepare the journal entry to record the payment of interest : Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2015, assuming no accrual of interest on June 30

Find the year zero cash flow for the machine : It will cost 5000 to modify and install it. We will need to spend 4000 on new parts and lubricants to keep it running smoothly.

Find the amount for the residual dividend : Timco needs to invest 400 in new assets. They use a capital structure that is 30% debt and 70% equity.

What is the price today of the zero maturing at time 1 : At time 0.5, the price of $1 par of a zero maturing at time 1 will be either $0.97 or $0.99. Consider two other assets.

User Account

All Pages