subject
Business, 04.04.2020 03:47 mariiuuuh

David's Delicatessen flies in Hebrew National salamis regularly to satisfy a growing demand for the salamis in Silicon Valley. The owner, David Gold, estimates that the demand for the salamis is pretty steady at 175 per month. The salamis cost Gold $1.85 each. The fixed cost of calling his brother in New York and having the salamis flown in is $200. It takes three weeks to receive an order. Gold's accountant, Irving Wu, recommends an annual cost of capitalof 22 percent, a cost of shelf space of 3 percent of the value of the item, and a cost of 2 percent of the value for taxes and insurance. a)How many salamis should Gold have flown in and how often should he order them?b)How many salamis should Gold have on hand when he phones his brother to send another shipment?c)Suppose that the salamis sell for $3 each. Are these salamis a profitable item for Gold? If so, what annual profit can he expect to realize from this item? (Assume that he operates the system optimally.)d)If the salamis have a shelf life of only 4 weeks, what is the trouble with the policy that you derived in part (a)? What policy would Gold have to use in that case? Is the item still profitable?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 20:30
Which of the following is an example of formal management controls? answers: a firm's culturethe willingness of employees to monitor each otherbudgeting and reporting activitiesmanagerial motivation
Answers: 3
question
Business, 22.06.2019 02:20
Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a
Answers: 2
question
Business, 22.06.2019 09:40
Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?
Answers: 2
question
Business, 22.06.2019 10:50
Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.
Answers: 3
You know the right answer?
David's Delicatessen flies in Hebrew National salamis regularly to satisfy a growing demand for the...
Questions
question
History, 08.10.2019 23:00
Questions on the website: 13722361