User Account

All Pages

What is the lowest total annual cost

Assignment Help Finance Basics
Reference no: EM132827031

Please show all work for the question below:E Office Suppliesdozen Order Size Discount per Dozen sells discounted office suppliers over the internet. One popular product sold is legal-size notepads. The current price is $20.00 per dozen, however, E Office Supplies offers a discount based on the quantity bought. E Office Supplies offers the following quantity discount (per dozen) structure based on how many notepads are ordered:

1-600 dozen --

601-999 dozen $0.40 per dozen

1000-1999 dozen $0.44 per dozen

2000+ dozen $0.47 per dozen

The STHDS law firm wants to decide how many legal notepads to order using the EOQ model for quantity discounts. Its ordering cost is $200 per order, its anticipated need (demand) in the coming year is for 180,000 notepads, and its annual holding cost is 40 percent of the acquisition cost. Assume that shipments are received instantaneously, demand is known and the usage constant, and the lead time is known and constant.

a) Based on the lowest total annual cost (ordering plus holding plus acquisition cost), how many dozen notepads should STHDS order each time?

b) What is the total annual cost (ordering plus holding plus acquisition cost) per year for this order quantity?

c) What is the lowest total annual cost (ordering plus holding plus acquisition cost) for each of the price points?

Reference no: EM132827031

Questions Cloud

Explain your experience with higher education laws : Provide a brief introduction of yourself and explain your experience with higher education laws specific to student affairs. Be sure to explain the purpose.
What is the inventory position immediately after reordering : c) If the lead time is 4 days what is the reorder point? Also, what is the inventory position immediately after reordering?
What is meant by a products contribution margin ratio : What is meant by a product's contribution margin ratio? How is this ratio useful in planning business operations? Often the most direct route to a business.
What is the average breakdown cost : With everything else the same, what is the average breakdown cost that results in the same total cost for a 2-month PM strategy and a 3-month PM strategy?
What is the lowest total annual cost : What is the lowest total annual cost (ordering plus holding plus acquisition cost) for each of the price points?
What is the expected completion time of the project : The estimated times and immediate predecessors for the activities in a project at John Black's company are given in the following table.
Identify definitions of severe disabilities : Identify definitions of severe disabilities, the role of the supports model in understanding students with severe disabilities, and the influence of social.
Who will need to be contacted regarding charlie suspension : Who will need to be contacted regarding Charlie's suspension? What services, if any, need to be provided to Charlie during his removal to an interim alternative
Determine the sequence of jobs using the rules : -Determine the sequence of jobs using the following rules: Critical ratio rule (CR) and Slack time.

Reviews

Write a Review

Finance Basics Questions & Answers

  Create a schedule showing the cash inflows

Create a schedule showing the cash inflows (including interest) and outflows of this fund. How much will be in the fund on Amelia's 16th birthday?

  The ensyder trading company etc is a zero growth firm with

the ensyder trading company etc is a zero growth firm with an ebit of 250000 and a corporate tax rate of 40. etc uses 1

  Statistical results for computed correlation

Using scholarly writing and proper APA format, please complete, and then submit the following: 1. The statistical results for each computed correlation above

  One standard deviation of the mean

For any normal distribution, 68 percent of the observations should fall within plus or minus one standard deviation of the mean.

  What is the present value of the lease

JLP Enterprises, Inc. owns a small shopping center and it has just signed a five-year, triple-net lease for an out parcel with an auto parts retailer.

  Society and the division of the power and perspective

Federalism has advantages and disadvantages however, federalism works effectively and plays an important role in our society and the division of the power

  Calculate the anticipated life-cycle cost

Select a system of your choice, and accomplish a life-cycle cost analysis (LCCA) in accordance with the steps identified in Table 3.6 and the process described in Appendix B.

  What is covered under the individual and households program

What is the purpose of the National Processing Service Centers in Texas, Virginia, and Maryland?

  Describe a proper management of earnings

Describe a proper management of earnings. Describe an improper management of earnings.

  Establishing and operating a retirement plan

Establishing and operating a retirement plan is not for the faint of heart. But it can be well worth the effort. What aspects of a retirement plan are important

  What is the percentage bid-ask spread

A bank gives you a bid-ask quote on the BGN (Bulgarian lev), of 0.77 - 0.87 USD/BGN. What is the percentage bid-ask spread?

  Briefly describe 3 bangladesh government measures

Briefly describe 3 Bangladesh government measures taken to help the economy during the current covid-19 crisis.

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