eoq inventory data | Business & Finance homework help

Get Custom Essay on eoq inventory data | Business & Finance homework help

Let Our Team of Pofessional Writers Take Care of Your Paper.

the following inventory data have been established for the stamps company:
1) orders must be placed in multiples of 400 units
2) annual sales are 720,000 units
3) the purchase price per unit from suppliers is $14
4) carrying cost is 30 percent of the purchase price of goods
5) fixed order cost is $90
6) three days are required for delivery

A)what is the EOQ? 
B) How many orders should stamp’s place each year?
C) at what inventory level should an order be made?
D) calculate the total cost of ordering and carrying inventories of the order quantity is (i) the EOQ amount (given the 400 units per order restriction), (ii) 4,000 units, or (iii)6,400 units.

15-7
Ramsey Tires sells on credit term of net 45 days, whereas the rest of the industry, whereas the rest of the industry sells on terms of net 30 days. on annual credit sales of $6 million, Ramsey currently averages 52 day’s sales in accounts receivable. The company’s CFO estimates that tightening the credit terms to net 30 days would reduce annual sales to $5.8 million, but accounts receivable would drop to 35 days of sales, and the savings on investment in them should more than overcome any loss in profit. Ramsey’s variable cost ratio is 80. If the interest rate on funds invested in receivables is 8 percent, should the change in credit terms be made? All operating costs are paid when inventory is sold. Bad debts and collection costs will not change.

15-8
although Faust Corporation has customers dispersed throughout the United States, the company has maintained its headquarters and central billing system in Atlanta. Management is considering an alternative collection procedure to reduce its float. On average, it takes five days from the tome customers mail payments until Faust is able to receive, process, and deposit them. Faust would like to set up a lockbox collection system, which it estimates would reduce the time lag from customer mailing to deposit by four fays-bringing it down to on day. Faust receive an average of $2,520,000 in payments per day. If Faust’s opportunity cost is 10 percent, how much is the lockbox system worth on a monthly basis

Calculate the price for this paper
Pages (550 words)
Approximate price: -

Try it now!

Calculate the price for this paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Best Quality Essays has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At Best Quality Essays, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.