You are the store manager at a large furniture store, FurnitureLand. One of your products is a study desk. The demand for study desks is relatively steady and inventory replenishments are ordered from the assembly plant whenever the quantity drops to the reorder level. The lead time from the assembly plant to your store is two weeks, and the ordering cost is $500. Weekly demand for the desk is normally distributed with mean of 50and a standard deviation of 10. Your internal cost of capital is 15 percent per yearand each desk costs $200. (Assume there are 52 weeks in oneyear).(a)Suppose you want to target a 98 percent service level. What should the safety stock and reorder point be

Sam robinson borrowed $21,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. sam’s friend would like to be reimbursed for the time value of money at a 9% annual rate. what is the annual payment sam must make to pay back his friend?

Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)