subject
Business, 25.09.2020 02:01 FireBoltSOR

A major liquor store finds that it sells an average of 100 bottles a week of regular 750 ml bottles of Jameson Irish Whiskey. Assume that there are 50 weeks in a year, and the demand occurs at a constant rate. The holding costs are estimated to be $2 per bottle per year. The liquor store currently purchases whiskey once in every two weeks, and a new order arrives exactly when the previous batch is completely sold out. Each order placed with the supplier costs the liquor store $10. Answer the following questions.(a) What is the current order cycle length? Express your answer in years. Round your answer to two decimals if needed.(b) What is the current order size? Recall that a new order arrives exactly at the moment when the previous batch is sold out.(c) What is the average inventory of Jameson whiskey at this liquor store?(d) With the current order quantity, how much does the liquor store spend per year on ordering the inventory of Jameson whiskey?(e) With the current order quantity, what are their inventory holding costs per year?(f) What order quantity would have minimized their total annual inventory costs? Assume that they will change their order schedule accordingly: that is, they may order more or less frequently than once in two weeks. Round your answer to the closest integer (i. e., no order quantities like 10.5 bottles are allowed)(g) What is the annual management-cost penalty the liquor store is currently paying for using the order quantity other than the optimal one? To find it, subtract the current total annual inventory cost associated with EOQ from their current annual inventory costs. Express your answer in dollars (not percentage change!), round to two digits if necessary.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:30
Which of the following correctly describes the accounting for indirect labor costs? indirect labor costs are product costs and are expensed as incurred. indirect labor costs are period costs and are expensed when the manufactured product is sold. indirect labor costs are period costs and are expensed as incurred. indirect labor costs are product costs and are expensed when the manufactured product is sold.
Answers: 3
question
Business, 21.06.2019 23:30
Renaldo scanlon is a financial consultant. he earns $30 per hour and works 32.5 hours a week. what is his straight-time pay?
Answers: 1
question
Business, 22.06.2019 12:10
The following transactions occur for badger biking company during the month of june: a. provide services to customers on account for $32,000. b. receive cash of $24,000 from customers in (a) above. c. purchase bike equipment by signing a note with the bank for $17,000. d. pay utilities of $3,200 for the current month. analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (decreases to account classifications should be entered as a negative.)
Answers: 1
question
Business, 22.06.2019 13:40
After much consideration, you have chosen cancun over ft. lauderdale as your spring break destination this year. however, spring break is still months away, and you may reverse this decision. which of the following events would prompt you to reverse this decision? a. the marginal cost of going to cancun decreases.b. the marginal cost of going to ft. lauderdale decreases.c. the marginal benefit of going to cancun increases.d. the marginal benefit of going to ft. lauderdale decreases.
Answers: 2
You know the right answer?
A major liquor store finds that it sells an average of 100 bottles a week of regular 750 ml bottles...
Questions
question
Mathematics, 03.03.2020 06:12
question
Mathematics, 03.03.2020 06:12
question
Mathematics, 03.03.2020 06:12
Questions on the website: 13722365