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Garden Variety Flower Shop uses 550 clay pots a month. The pots are purchased at $3.00 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots. a. What additional annual cost is the shop incurring by staying with this order size? (Round your optimal order quantity to the nearest whole number. Round all other intermediate calculations and your final answer to 2 decimal places. Omit the "$" sign in your response.) Additional annual cost $ 275.56 b. Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,500)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent. Omit the "%" sign in your response.) About 11 % of the storage space would be needed.
The Wedding Planner: Adrian Brady would like to save at least $20,000 and have it ready two years from now to pay for his anticipated wedding party to which he plans to invite all his and his fiancé’s relatives and friends. What is the effective annu..
The preferred stock of Julian Industries sells for $44 and pays $6 in dividends. The net price of the security after issuance costs is $39.16. What is the cost for the preferred stock? What is the cost of capital for the proffered stock as a percenta..
Boeing Aircraft LLP, a manufacturer of rubber-band powered drones, forecasts total fund requirements for the next calendar year as follows: What is the permanent component of the monthly funds requirement, and its monthly average. What is the seasona..
What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally?
What are the two ways you can recognize returns when investing in stocks? What causes poor memory and how can you improve your memory?
XYZ currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on May 1, 2031, approximately 15 years from today. It has a yield to maturity of 4.8%. For simplicity, assume that coup..
What annual sales volume is needed to generate a net present value of $0?
n the physical implementation depicted in given Figure, the computer updated the accounts payable data upon receipt of a vendor invoice. Describe the procedures that you believe should control that process.
When you compound an initial lump sum annually instead of monthly at the same nominal interest rate over the same three year period, what will happen to the future value? Same question in other words: what happens to the future value if you compound ..
Why can some taxes that appear to be regressive in terms of current income be thought of as progressive from a lifetime tax incidence perspective?
The monthly rate of return on T-bills is 0.1%. what should the rate of return on its stock been this month?
what contribution will this project make to your firm's value, after considering the riskiness of the projected returns?
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