Calculate the restocking costs

Assignment Help Financial Management
Reference no: EM13942244

A) Clap Off Manufacturing uses 2,300 switch assemblies per week and then reorders another 2,300. Assume the relevant carrying cost per switch assembly is $6.00 and the fixed order cost is $570. Required: (a) Calculate the carrying costs. (Do not include the dollar sign ($).)

B) Calculate the restocking costs

Calculate the economic order quantity. (Round your answer to 2 decimal places)

Calculate the EOQ number of orders per year. (Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM13942244

Questions Cloud

Proposed changes in credit terms should be implemented : BigBlue Prints has sales this year of $15 million under its current credit policy. The present terms are net 30; the average collection period is 60 days; and the bad debt loss percentage is 5 percent. Perform a complete analysis to justify whether o..
Case study-british airways and its strategy : British Airways is the national airline of Great Britain. It was established in 1974 as a result of a merger of 4 British airlines. British Airways were privatised in 1987.
Her and peter will attend the meeting this afternoon : Most people these days have the recognition that it is important to express ideas as concisely as possible. If I had known you were coming, I would of baked a cake.
Total interest amount you will pay over the life of the loan : Loan Amortization Problem Type your full name in the following order First Middle Last Number of letters in full name = Now assume that your annual salary = number of letters in your full name x $45,000 and that the bank you want to borrow from. Calc..
Calculate the restocking costs : Clap Off Manufacturing uses 2,300 switch assemblies per week and then reorders another 2,300. Assume the relevant carrying cost per switch assembly is $6.00 and the fixed order cost is $570. Calculate the restocking costs. Calculate the economic orde..
Overall cost of debt is weighted average of that implied : Vedder, Inc., has 6.1 million shares of common stock outstanding. The current share price is $61.10, and the book value per share is $4.10. Vedder also has two bond issues outstanding. Assume that the overall cost of debt is the weighted average of t..
Modify mortgagedisplaygui.java to implement actionlistener : Interrogate the ActionEvent object and determine the source of the action.
Annuity and retirement-calculate the price of stock : Annuity/Retirement A. If you deposited the following amount per month (letters in your last name X $80) from your paycheck from the time you graduate from school until you retire (at age 75) and your employer contributed an extra 6%, how much wealth ..
Kim had the following transactions : Kim had the following transactions for 2012:

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluating two different machines

You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after tax) of -$6,000 per year. Machine B costs $30,000, has a seven-year life, and has an annual OCF (after tax) of -$5,500 per year. If..

  Required rate of return on a stock with beta

Assume that the risk-free rate is 6% and that the market risk premium is 8%. What is the required rate of return on a stock with a beta of 1.3?

  About the corporate tax liability

The Talley Corporation had a taxable income of $405,000 from operations after all operating costs but before (1) interest charges of $81,000, (2) dividends received of $12,150, (3) dividends paid of $32,400, and (4) income taxes. What are the firm's ..

  Assume the firm switches to debt-to-equity ratio

The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par with a 6.3 percent coupon. What will be its cost of equity after the switch? Ignore taxes.

  What is the initial expected NPV with this plan

Suppose a 25mm new venture has a 50% chance of success or failure. Success is 10mm per year perpetual earnings and failure is 8mm per year perpetual losses. The discount rate is 10%. What is the NPV for each scenario? What is the simple expected NPV?..

  What is the minimum expected annual return for stock

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

  Calculate the total drilling cost

Determine the drill metres required to achieve a production rate from grade control blasting and design the drilling/blasting pattern showing hole diameter, hole depth, burdens, spacings, explosive types, primers and initiation system and indicate ..

  Write a brief memorandum to the tax files

Write a brief memorandum to the tax files that summarizes the advice you should give Ron - you notice that Ron has not reported any part of the award as income and has included the medical expenses in computing his itemized deductions.

  Used to qualify property for the marital deduction

A Q-TIP Trust may be used to qualify property for the marital deduction. All the following statements concerning the requirements that must be met for an effective Q-TIP Trust are correct EXCEPT:

  Universal toddler industries stock market conditions change

As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries stock as market conditions change. Suppose rRF=5% rM =12% and bUTI = 1.4. Under the current conditions what is rUTI, the required rate..

  How much new total debt must the firm acquire

Cross Town Express has a sale of $137,000, net income of $14,000, total assets of $98,000, and total equity of $45,000. The firm paid $7,560 in dividends and maintains a constant dividend payout ratio. Currently, the firm is operating at full capacit..

  Common shareholder get in aggregate post-liquidation

Suppose that a recently-healthy firm has just defaulted, has been liquidated, and where the firm's assets were worth $100 million before the liquidation. How much money would common shareholder get in aggregate post-liquidation?

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