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A car dealer must pay $20,000 for each car purchased. The annual holding cost is estimated to be 25% of the dollar value of inventory. The dealer sells an average of 500 cars per year. He is willing to backlog some demand but estimates that if he is short one car for one year, he will lose $20,000 worth of future profits. Each time the dealer places an order for cars, the ordering cost is $10,000. Determine the dealer's optimal ordering policy. What is the maximum shortage that will occur? Assume it costs $5000 to store a car for a year (this is in addition to the holding cost above).
You are required to work the following problem, using compound interest techniques. You should model your answer on the text approach in Chapter 5.
Depreciation expenses are expected to be 0.5%of sales.
What were the details of the acquisition?
Determine pension expense for the year. Prepare the journal entries to record pension expense and funding for the year.
What are the key variables for evaluating credit policy changes
jaime inc. manufactures two products sweaters and jackets. the company has estimated its overhead in the
list at least three common miscellaneous itemized deductions and explain why these expenses can not be deducted
Partner A performs $5,000 of contract-type Code Sec. 707(a) services for the ABC partnership in December of 2009, but does not get paid until January of 2010. A and ABC are both calendar-year taxpayers, but A is on the cash basis and ABC is on the..
The change will result in a $1,800,000 increase in the start inventory at January 1, 2013. Consider a 40% income tax rate. Find the cumulative effect of this accounting change on beginning retained earnings
tyrene products manufactures recreational equipment. one of the companys products a skateboard sells for 32. the
indicate whether the following statements about the conceptual framework are true or false. if false provide a brief
goldman corporation bought a machine on june 1 2010 for 35934 f.o.b. the place of manufacture. freight to the point
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