What inventory level should an order be placed

Assignment Help Business Economics
Reference no: EM132288754

Media Moguls (M&M) normally sells 240,000 units per year. It costs M&M $52 to purchase each unit, the fixed cost of ordering is $260, and the carrying costs equal 15 pecent of the units purchase price. (a) What is the EOQ? (B) How many orders should M&M place each year?

Refer to the information provided for M&M un problem 15-17. suppose that M&M must place orders in increments of 5,000 units and that it takes three days for each order to be delivered. (A) How many orders should M&M place each year? (B) At what inventory level should an order be placed?

Reference no: EM132288754

Questions Cloud

What is the market risk premium : What is the expected return for a stock with a beta equal to 1.50? What is the market risk premium?
There are a number of tax planning strategies : What are the different strategies and how could a person plan to incorporate them into their financial plan currently or in the future?
Incremental cash flow effects of the replacement : a. If the old machine is replaced, what is the incremental effect on the firm's after-tax cash flow in year 0?
What would you rate the most important concept you have : Provide a reflection of at least 300 words of how the knowledge, skills, or theories of this course have been applied, or could be applied.
What inventory level should an order be placed : (A) How many orders should M&M place each year? (B) At what inventory level should an order be placed?
Do you see the techniques you reviewed as an advantage : Reflecting on your program of study so far, how does this class prepare you for the world of data visualizations and more specifically.
What evidence is the ceo using to suggest : What evidence is the CEO using to suggest that Genex is not using technology competitively?
What is the eoq for the mowers : (A) What is the EOQ for the mowers? (B) What will be the total inventory costs if the EOQ amount is ordered?
How about diversification-conglomerate strategy : How about diversification/conglomerate strategy? Any advantage to diversifying your business? Discuss unrelated diversification and related diversification.

Reviews

Write a Review

Business Economics Questions & Answers

  Competitive business-fixed costs and variable costs

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1.00 per poster. She has fixed costs of $100.00. Her variable costs are $1,500 for the first thousand posters, $1,200 fo..

  Calculation of gdp

Explain why activities in so-called underground economy are excluded in the calculation of GDP.

  Marginal utility for cups of coffee is constant

Suppose that Omar’s marginal utility for cups of coffee is constant at 3.5 utile per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the..

  What describe the distribution of national salary

What describe the distribution of national salary among labor and capital in a competitive, profit-maximizing economy with constant returns to scale.

  What asymetric information can contribute

What asymetric Information can contribute to the onset of both a currency and financial crisis.

  How can business benefit from the gig economy

How can business benefit from the gig economy? What will happen if many people are paid under the minimum wage rates?

  Determining the profit-maximizing sales quantity

What type of cost has NO impact on determining the profit-maximizing sales quantity? To earn the greatest possible profit, a firm must: In which situation might a company NOT want to maximize profit?

  Problem regarding the demand for smartphones

Cell phone data plans are most useful when used with a smartphone, and smartphones are most useful when used with a data plan. As the price of data plans falls, the demand for smartphones will:

  Consider the utility of wealth function

Consider the following utility of wealth function: U(W) = 25*W0.3 You currently have $10,000. There is an 8% chance that you get sick, in which case you lose half of your wealth ($5,000). What is your expected wealth? What is your expected utility?

  Is there any reason to prefer course of action over another

Review options available for managing this foreign-currency liability. Is there any reason to prefer one course of action over another.

  Contain inflation and to avoid hyperinflation

Class...Most economists including John Keynes prefer inflation to deflation. But, at the same time, Keynes recognized the dangers of inflation and suggests that it should not go out of control since hyperinflation can be extremely bad. What would you..

  Price of bonds and interest rates

Please explain the price of bonds and interest rates using supply and demand curves. Using supply and demand curves, draw curves before and after movement, please explain how rates are determined if the supply curve moves right or left. Using dema..

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