Answer:
EOQ = 220.6052281 shirts rounded off to 221 shirts
The order should be placed after every 110 days.
Explanation:
The EOQ or economic order quantity is the optimum order level or quantity which minimizes the inventory related costs. This is the order quantity where the cost of ordering and the cost of holding the inventory is the minimum. The formula for EOQ is,
EOQ = √(2 * AD * O) / H
Where,
Annual demand for t shirts (assuming 365 days per year) = 2 * 365 = 730
Holding cost per unit per year = 0.5 * 12 = $6
EOQ = √(2 * 730 * 200) / 6
EOQ = 220.6052281 shirts rounded off to 221 shirts
To calculate how frequently the order should be placed,we will calculate the number of orders per year by dividing the total annual demand by the EOQ.
Number of orders per year = 730 / 220.61
Number of orders per year = 3.309 or 3.31 orders per year
Number of days per order = 365 / 3.309
Number of days per order = 110.305 days or 110 days
Draw the journal entry.
Answer and Explanation:
The journal entry is given below:
Factory overhead Dr $550
To Raw material inventory $550
(being the actual indirect material cost is recorded)
Here the factory overhead is debited as it increased the expense while the raw material inventory is credited as it decreased the assets
The journal entry for Dream House Builders, Inc., incurring $550 of indirect materials costs would be a debit to the Manufacturing Overhead account and a credit to the Materials Inventory account, reflecting the expenditure.
The subject of this question is related to accounting and journal entries concerning indirect materials costs. When Dream House Builders, Inc. incurs $550 of actual indirect materials costs, the journal entry would record this as a debit to manufacturing overhead and a credit to the materials inventory.
For instance, assuming the indirect materials used are reducing the inventory, the journal entry would look like this:
This signifies that the indirect materials costs are absorbed into manufacturing overhead (an expense account) from the inventory (an asset account), adhering to double-entry bookkeeping.
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Answer:
A joint venture
Explanation:
A joint venture -
It refers to as the business agreement between two or more groups in order to attain a common goal collectively , is referred to as joint venture .
The parties comes together with their resources to accomplish the goal together .
The common project can be a new business or any existing business .
In a joint venture , the profit and loss is equally shared among each of the member .
Hence , from the given scenario of the question ,
The correct answer is joint venture .
Answer:
Export minimum public procurement policy
Explanation:
'Chinese government allowing foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises' : illustrates the case of - 'Export minimum public procurement policy'
This is a policy adopted by various economies. The policy states that foreign companies should use a minimum level of inputs from their domestic medium & small scale enterprises. This is to create equitable growth opportunities for the MSMEs. As MSMEs are important by perspective of - regionally balanced growth, income equity, employment opportunities generation ; they need this protection.
Answer:
The GDP in 2008 was $6800
Explanation:
The GDP or Gross Dividend Product of the country is the total value of the economic activity or the value of goods and services produced in an economy within a country in a certain year.
The formula to calculate the GDP = C + I + G + ( X - M )
Where,
Thus, GDP = 5000 + 1000 + 900 + ( 100 - 200)
GDP = $6800
Answer:
$168,000
Explanation:
Given
Dartmouth Corporation
Contribution format Income Statement
For the month of June.
Sales (2,800 units) $ 263,200
Variable costs 106,400
Contribution margin 156,800
Fixed costs 135,000
Operating profit $ 21,800
We calculated the sales revenue and the variable costs by dividing the total costs with the number of units and multiplying it with 3000 units to get contribution margin for 3000 units.
Calculated.
Dartmouth Corporation
Contribution format Income Statement
For the month of June.
Sales ( 3000 units) ($ 263,200 / 2800) * 3000= $ 282000
Variable costs (106,400 / 2800) * 3000= $ 114000
Contribution margin $ 168,000
Fixed costs 135,000
Operating profit $ 33,000
Answer:
1,040
Explanation:
The Herfindahl index is an index that is used to measure the size of firms in relation to the industry and it also shows the level of competition among the firms in the industry. The Herfindahl index is also known as Herfindahl–Hirschman Index (HHI).
The Herfindahl index is calculated by summing the square of the market share of all firms in the industry. For this question, it can be calculated as follows:
Herfindahl index = (12^2 * 5) + (8^2 * 5) = 720 + 320 = 1,040.
Answer:
new wants continue to develop and willingness to meet them is limited.
Explanation:
In economics, scarcity refers to not being able to satisfy the total demand for goods and services. Everything is scarce, specially time (also capital, labor, technology), and economic agents must allocate resources that yield the highest benefits to them. The demand for goods and services is virtually unlimited, but if you can earn a higher profit from selling certain good X than selling good Y, you will sell good X and the consumers' demand for good Y will be unsatisfied.
Scarcity exists because human wants and needs are infinite, but the resources to fulfill these are finite. Our society constantly desires new and more goods, but our ability to produce these items is limited. This results in constant decision-making about what to produce, how to make it, and who will receive it.
Scarcity exists due to the second multiple choice option - new wants continue to develop, and the willingness or ability to meet them is limited. This is a foundational concept in economics explained by the fact that human wants and needs are infinite, but resources to fulfill these wants and needs are finite. This disparity between nearly limitless wants and the limited production capability results in scarcity.
Even as societal productivity improves, and we produce more goods and services, we continually desire more and newer products. Additionally, resources such as land, labor, and capital are not infinite. We always have to make decisions about what to produce, how to produce it, and who will get what is produced. Those are the three central coordination problems.
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