User Account

All Pages

What is the average inventory level for the gasoline

Assignment Help Finance Basics
Reference no: EM132707397

The NY taxi company uses a gasoline at a consistent rate with the with following details:

Demand = 200,000 gallons per year

Ordering charge = $40 per order

Gasoline evaporation and storage cost = 10% per year

Gasoline cost per gallon = $1.80

Number of working days per year = 250 days

a. How much gasoline should the company purchase with each order, i.e., determine the economic order quantity.

b. What is the average inventory level for the gasoline?

c. What is the total annual ordering and carrying cost?

d. What is the penalty if the company can purchase only 6500 gallons at each order due to the tank's holding capacity?

e. Should the company spend $446 to have an additional storage tank installed?

Reference no: EM132707397

Questions Cloud

Summarizing key policy changes over history : American federalism has evolved since 1789. Describe the issue briefly, including summarizing key policy changes over its history.
Identify the price for the option at each node : Consider a 4-period binomial model of option pricing. Let the current period be t = 0. Prices change at period t = 1, period t = 2 and period t = 3.
Find how much is the effect on the company : Find how much is the effect (incremental net operating income) on the company's total net operating income through accepting the special order?
Calculate Orioles earnings per share : Oriole also had 200,000 common shares outstanding during the year. Calculate Oriole's 2020 earnings per share
What is the average inventory level for the gasoline : The NY taxi company uses a gasoline at a consistent rate with the with following details:
Central aim in devising the veil of ignorance : What do you take to be Rawls central aim in devising the "veil of ignorance" in this theory of justice?
Construct the retirement planning portion of financial plan : At the retirement planning meeting held recently, richard and monica were in agreement that they were well short of the money they needed for retirement at rich
Prepare the journal entries Purse recorded : Purse purchased $400,000 par value of the bonds; Prepare the journal entries Purse recorded during 20X4 with regard to its investment in Scarf bonds
Find how information should be presented on the statement : Show how the information should be presented on the statement of financial position of Tamarisk, Inc. at December 31, 2020.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd