What is the reorder point

Assignment Help Accounting Basics
Reference no: EM132740739

Question - The B.N. Thayer and D.N. Thaht Computer Company sells a desktop computer that is popular among gaming enthusiasts. In the past few months, demand has been relatively consistent, although it does fluctuate from day to day. The company orders the computer cases from a supplier. It places an order for 5,000 cases at the appropriate time to avoid stockouts. The demand during the lead time is normally distributed, with a mean of 1,000 units and a standard deviation of 200 units. The holding cost per unit per year is estimated to be $4.

Required - How much (in units) safety stock should the company carry to maintain a 96% service level? What is the reorder point? What would the annual holding cost be if this policy is followed?

Reference no: EM132740739

Questions Cloud

Determine what is the value of the firm : Rate of 5% per year, indefinitely, after year 5. If the company's weighted average cost of capital is 10%, then what is the value of the firm?
What are the main objectives of job analysis : What are the main objectives of job analysis? Design the competency-based job descriptions and job specifications for the recruitment and selection manager.
What legal requirements can apply in meeting situations : What legal and ethical requirements can apply in meeting situations? Outline at least 4 examples. The response must be typed.
What is the budgeted ending cash balance in february : Cash transactions expected during February. The beginning cash balance in February was $50,000. What is the budgeted ending cash balance in February?
What is the reorder point : Required - How much (in units) safety stock should the company carry to maintain a 96% service level? What is the reorder point
Describe strategies and tactics a negotiator would employ : Describe the strategies and tactics a negotiator would employ in an Integrative bargainingsituation. Please provide an example of integrative bargaining.
What fringe benefits would offer and explain why : Find What fringe benefits would you offer and why? If you had your own company with employees and you wanted to offer fringe benefits
Calculate the present value of the following : Can explain to me how to solve the question step by step using the formula and not by excel.
Make journal entries for Sheridan Company to record events : Make journal entries for Sheridan Company to record all the events noted above, assuming sales and receivables are entered at gross selling price

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the company total gross margin

The company sold 35,000 units in the East region and 10,000 units in the West region. What is the company's total gross margin under absorption costing

  Schedule of compensation expense

prepare a 5-year (2009-2013) schedule of compensation expense pertaining to the 40,000 SARs granted to president scott.

  How many weighted average shares were dilutive

Oil Services Corp. reports the following EPS data in its 2014 annual report, How many weighted average shares were dilutive in 2014

  Evaluate the alternatives consider by derby shoes

Evaluate each of the alternatives consider by derby shoes.- Do any of the option meet or exceed derby targeted increase in income of 25%?

  What should be the overall effect on net operating income

Fixed expenses are $355,000 per month. What should be the overall effect on the company's monthly net operating income of this change

  What is jeremy total income tax liability

Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy has two qualifying dependent children who live with him.

  Describe three issues that a company could encounter

Describe three issues/problems that a company could encounter when trying to determine actual cost of a good or service to be used in the cost of goods sold.

  Prepare journal entries for listed transactions and events

The following are selected transactions of Graves Company. Prepare journal entries for the listed transactions and events

  The normal selling price is 16 per unit the companys

the normal selling price is 16 per unit. the companys capacity is 15000 units per month. an order has been received

  What is the balance is Allowance for Doubtful Accounts

If the percentage of receivables method is used, what is the balance is Allowance for Doubtful Accounts after any adjustment is made

  Compute Rubio taxable income

The applicable income tax rate is 30% (combined Federal, state, and global). Compute Rubio's taxable income

  Compute the combined tax liability of the two corporations

Avis's taxable income for the year is $300,000 and Best's taxable income for the year is $425,000. compute the combined tax liability of the two corporations

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