Suppose that the demand for a particular t-shirt the UNC Student Stores sells is deterministic with 2 units per day. Each t-shirt costs $10 and the monthly charge of carrrying one t-shirt is 50 cents. If the fixed cost of placing an order (e.g. transportation cost etc.) regardless of the order size is $200 and the order arrives instantaneously, what is the optimal number of t-shirts the UNC Student Stores should order every time it places an order and how frequently should the orders be placed?

Answers

Answer 1
Answer:

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,

  • AD refers to annual demand
  • O is ordering cost per order
  • H is holding cost per unit per year

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


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During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by materials requisitions. Required:
Draw the journal entry.

Answers

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

Final answer:

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.

Explanation:

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:

  • Manufacturing Overhead Debit $550
  • Materials Inventory Credit $550

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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As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?

Answers

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.

"In the economy of Wrexington in 2008, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Wrexington’s GDP in 2008?"

Answers

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,

  • C is the consumption
  • I is the Investment
  • G is the government spending
  • X is the value of exports
  • M is the calue of imports

Thus, GDP = 5000 + 1000 + 900 + ( 100 - 200)

GDP = $6800

Dartmouth Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (2,800 units) $ 263,200 Variable costs 106,400 Contribution margin 156,800 Fixed costs 135,000 Operating profit $ 21,800 If the company sells 3,000 units, its total contribution margin should be closest to: $23,357. $175,600. $156,800. $168,000.

Answers

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

There are ten firms in an industry. Five of the firms each have a market share of 12 percent and five of the firms each have a market share of 8 percent. The Herfindahl index is Group of answer choices 1,000. 1,040. 100. 920. none of the above

Answers

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.

Scarcity exists because: Multiple Choice individuals cannot solve the three central coordination problems. new wants continue to develop and willingness to meet them is limited. the supply of goods is always less than the demand. governments cannot solve the three central coordination problems.

Answers

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.

Final answer:

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.

Explanation:

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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