What is the eoq for product

Assignment Help Finance Basics
Reference no: EM132675786

Dream Vacation company specializes in virtual holidays. Its business have been booming since last summer. When booking a trip its clients receive a package over the mail that enhances their experience such as fragrances: ocean, mountain... along with packages of exotic food associated with the countries visited.

The company deals with various distributors and is asking you to figure out its optimal order quantity. It wishes to focus first on the fragrance orders.

Dream Holidays expects its sales over the next year to be 600,000 trips. For each booking they offer an average of two (2) bottles of fragrance. They sell the product $7 per bottle. The holding cost is $10.00 per packages that contains a dozen bottles. The wholesale cost is 40% of the sales price. The order cost is $60 per order and the company has a yearly opportunity cost of 2%.

A) What is the EOQ for this product

B) Assuming a 360 day work per year, how many orders should be processed per year?

Reference no: EM132675786

Questions Cloud

Return on investment in terms of usd during 2019 : On January 1, 2019, the exchange rate was USD 0.0545 = MXN 1. On January 1, 2020, the exchange rate was USD 0.0482 = MXN 1.
How has social media been used : What recommendations would you make to the entertainment company as it relates to advertising and promotions and the movie or series or show?
What is the amount reported as cash in the statement : Cash at bank (saving account) $6,000 and GST refund due $300. What is the amount reported as Cash in the statement of financial position
What is the npv of transaction-funny mask company : Funny Mask Company has received an order for its product totaling $350,000. The cost of goods sold is on average 30% of the sale amount. Assume that the firm pa
What is the eoq for product : Dream Vacation company specializes in virtual holidays. Its business have been booming since last summer. When booking a trip its clients receive a package over
Explanatory focus between macro and micro theories : Identify and detail what is the difference in explanatory focus between macro and micro theories and select one macro theory and explain why it is a macro
Briefly discuss main tax advantages for foreign investors : Briefly discuss two main tax advantages for foreign investors who invest in New Zealand via a Limited Partnership rather than an ordinary company
Identify and describe the movie or series or show : Identify and describe the movie or series or show. Who is the movie or series or show targeted to? What media are being used and attach or include examples?
Find out efficient market hypothesis : Explain whether each of the following phenomena would be consistent with the efficient market hypothesis.

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!

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