EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant
Question:
EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant carrying cost per switch assembly is $10, and the fixed order cost is $2,400, is Redon’s inventory policy optimal? Why or why not?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
The carrying costs are the average inventory times the cost of carrying an individual unit so Ca...View the full answer
Answered By
RADHIKA MEENAKAR
I am a qualified indian Company Secretary along with Masters in finance with over 6 plus years of professional experience. Apart from this i am a certified accounts and finance tutor on many online platforms.
My Linkedin profile link is here https://www.linkedin.com/in/radhika-meenakar-88b9808a/
5.00+
12+ Reviews
22+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Redan Manufacturing uses 1,700 switch assemblies per week and then reorders another 1,700. If the relevant carrying cost per switch assembly is $7, and the fixed order cost is $725, is Redans...
-
Odium Manufacturing uses 2500 switch assemblies per week and then reorders another 2500. If the relevant carrying cost per switch assembly is $7.50, and the fixed order cost is $1,300, is Odiums...
-
Fhloston Manufacturing uses 1,860 switch assemblies per week and then reorders another 1,860. If the relevant carrying cost per switch assembly is $6.25, and the fixed order cost is $730, is the...
-
Use the figure to make the lists in Exercises 8586. List the slopes m 1 , m 2 , m 3 , and m 4 in order of decreasing size. y y = mx + b y = mx + b X - y = m3x + b3 y = m4x + b4
-
The infamous chicken is dashing toward home plate with a speed of 5.7 m/s when he decides to hit the dirt. The chicken slides for 1.2 s, just reaching the plate as he stops (safe, of course). (a)...
-
According to a September 2008 poll and report done by Pew/Internet, 62% of employed adults use the Internet or e-mail on their jobs. What is the probability that more than 180 out of 250 employed...
-
Assume that Reebok has developed two new types of athletic shoes. One is designed for distance runners, and the other has been developed for skateboarders. As a marketer, you need to evaluate the...
-
The following information has been taken from the ledger accounts of Sampras Corporation. Determine the current balance of retained earnings. Total income since incorporation Total cash dividends...
-
The function f(x,y,z) = (xyz)" to find these values. 1/2 has an absolute maximum value and absolute minimum value subject to the constraint x + y + z = 4 with x0, y 0, and z 20. Use Lagrange multipli...
-
An automatic machine produces (thousands of) units of a product per day. As increases, the proportion of defectives, p, goes up according to the following probability density function Each...
-
Credit Policy Evaluation Quest, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Quest...
-
EOQ the Trektronics store begins each week with 450 phasers in stock. This stock is depleted each week and reordered. If the carrying cost per phaser is $37 per year and the fixed order cost is $125,...
-
Michelle's business produces ceramic cups using labor, clay, and a kiln. She can manufacture 25 cups a day with one worker and 35 cups with two workers. Does her production process illustrate...
-
How do endocrine disruptors perturb hormone function and disrupt normal physiological processes, and what are the potential ecological and human health implications of exposure to these compounds ?
-
Identify and describe three examples of how consumerism was manifest in the 1950's. Use complete sentences with proper punctuation and spelling. (5 points = 5 relevant thoughts/pieces of information)...
-
Mandalorian Manufacturing produce some of its products in processes. You have been provided with the following information: Transfer from Process 1 Material MM12 Direct Labour Direct Expenses Fixed...
-
The Village Restaurant adjacent to the old Palace Cinema was established in 1960. It soon became a hot spot to dine and be seen at with many live bands and music performers having made their early...
-
What are the molecular mechanisms governing hormone synthesis, secretion, and receptor activation, and how do these processes contribute to the regulation of physiological homeostasis and adaptive...
-
Analytical procedures represent an important tool in the hands of the auditor. Discuss.
-
Draw two scatterplots, one for which r = 1 and a second for which r = 21.
-
What power is supplied to the starter motor of a large truck that draws 250 A of current from a 24.0-V battery hookup?
-
Triumph Autos has contracted with an Indian software firm for design software. The payment of 22,779,750 rupees (Rs) is due in 30 days. What is the cost in dollars if the 30-day forward rate is...
-
Use the data in Exhibit 21.5 to answer these questions: a. What is the six-month forward rate (in U.S. dollars) for Swiss francs? Is the Swiss franc selling for a premium or a discount? b. What is...
-
Nova Scotia Bank offers quotes on the Canadian dollar as shown below. What is the bid-ask spread based on these quotes? Bid Ask C$ 0.9973/$ ....... C$ 0.9978/$
-
Companies are expected to have the strongest internal controls over which the following types of data: Fixed asset records customer information bank account deposit and balance information...
-
Which of the following is not a general rule for allocating nonbusiness income? Multiple Choice Rental income for investment property to state of commercial domicile Interest and dividends to the...
-
Brothers Inc. expects earnings of $8,000,000.00 in the current year on 6,000,000 outstanding shares of common stock. The company is considering the effects on reported earnings of issuing an...
Study smarter with the SolutionInn App