Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound PER DAY. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound. Assume this store opens 365 days per year. If she were to order 80 pounds of pepperoni at a time, how many orders per year would there be (do not round)? O365 O30.42 91.25 O 0.25

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound PER DAY. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound. Assume this store opens 365 days per year. If she were to order 80 pounds of pepperoni at a time, how many orders per year would there be (do not round)? O365 O30.42 91.25 O 0.25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order and receiving a shipment of sugar involves a cost of $135. Annual carrying costs are $630 per bag. The bakery operates 280 days per year. Lead time = 2 weeks. Determine the economic order quantity. What is the average number of bags on hand? When should the bakery order for more sugar? How many times per year will the bakery order for sugar?
Charlotte sells widgets which cost $50 each to purchase and prepare for sale. Annual sales are 10,000 widgets, carrying cost are 15% of inventory costs, and Charlotte incurs a cost of $25 each time an order is placed. Suppose her supplier decides to offer a 3% cash discount if products are ordered in increments of 1250. How many widgets should Charlotte order each time an order is placed to minimize costs? I have submitted this question twice and both times was answered with how many orders of 1250 will satisfy the demand of 10,000 widgets. I need to know how to figure out HOW MANY WIDGETS PER ORDER to minimize costs.
A sport store carries a shoe for men that sells an approximately 3,049 pairs per year. The store purchases the shoes from the manufacturer for $30.2 per pair. The order lead time is 12 days. It costs the store $58 to place and process an order. The annual carrying charge is 24 percent. Assume EOQ model is appropriate and 360 days a year. If the store uses an order quantity of 276 units per order, what is the annual ordering cost? Use at least 4 decimal places.
Lia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on. Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. Assume that the demand is constant throughout the year. QUESTION: What would the average inventory be? What would the annual holding cost be?
Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to produce the candy is $4,000. The main ingredient for the candy, glucose syrup costs $0.21 per pound. Gooby Gummies sells the taffy for $0.75 per pound to supermarkets. The management of Gooby Gummies is thinking of raising the price of the taffy candy to $0.95 per pound. Currently, the company produces and sells 9,000 pounds of taffy candy a month. The management realizes that if they raise the price, the sales will go down to 5,700 pounds per month. By how much will the company's profit per year be affected if Gooby Gummies' management decide to raise the price? Should the company raise its price? Explain your answer.
Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to produce the candy is $4,000. The main ingredient for the candy, glucose syrup costs $0.21 per pound. Gooby Gummies sells the taffy for $0.75 per pound to supermarkets.The management of Gooby Gummies is thinking of raising the price of the taffy candy to $0.95 per pound. Currently, the company produces and sells 9,000 pounds of taffy candy a month. The management realizes that if they raise the price, the sales will go down to 5,700 pounds per month. By how much will the company's profit per year be affected if Gooby Gummies' management decide to raise the price? Should the company raise its price? Explain your answer.
Mr. Ahmed works in a bakery which operates 6 days a week, 52 weeks a year. The bakery needs flour which is delivered to the bakery at 10 OMR each order. Each operational day, Mr. Ahmed needs 10 bags of four10 kg weight each bag Each bag costs OMR 12. The annual holding cost per bag is 15% of the purchase price of bag. If the shelf life of the flour bags is 2 weeks only, and Mr. Ahmed orders only accordingly to meet the demand for 2 weeks each order, then what will be the total variable cost per year ?
Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer. Green Trees plans on ordering t-shirts several times over the next year. The firm receives 2,500 t-shirts each time it orders. The carrying cost is $0.10 per shirt per year. The order cost is $500 per order. What is the annual ordering cost of the t-shirt inventory (rounded to the nearest dollar)?
Henry Sweet Company currently makes 6-inch candy sticks that it sells for $0.20 each. Henry can make 12-inch candy sticks out of two 6-inch candy sticks by melting them together, which costs an additional $0.03 per 12-inch stick. Henry can sell the 12-inch sticks for $0.45. Henry has enough capacity to make 10,000 6-inch candy sticks per month, and enough demand to sell all of the candy sticks it can manufacture, whether 6- inch or 12-inch. Should Henry sell 6-inch or 12-inch candy sticks, and how much additional profit will its decision bring in per month? Multiple Choice O O Sell 6-inch sticks, additional $100 Sell 6-inch sticks, additional $250 Sell 12-inch sticks, additional $100 Sell 12-inch sticks, additional $250
A grocery store orders frozen pies in batches from a bakery and sells them in the grocery store. Storing one frozen pie for a year costs $0.85. When the grocery store reorders pies, there is a fixed cost of $8.05 per order as well as $1.15 per pie. Each year, they sell 3500 frozen pies. What is the optimal number of pies to order in each order to minimize their total inventory costs.
Lila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of forms used in the placing order, and so on. Furthermore, she estimates that the cost of carrying one screw in theinventory for an year is one-half of one cent. Assume that the demand is constant throughout the year. (a)How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost? (b)How many orders per year would be placed? What would the annual ordering cost be? (c)What would the average inventory be? What would the annual holding cost be?
You have a business selling and delivering pizzas to businesses for lunch. You pay $4,000 per month in rent, $320 for utilities, and $2,000 a month for salaries. You also have delivery cars that cost $1,000 per month. Your variable costs are $8 per pizza for ingredients and $4 per pizza for delivery costs. You sell the pizzas for $20 each. Round up if necessary What is the number of pizzas you need to sell to break even for the month If you want to make a profit of 2,000 per month, how many pizzas do you need to sell? Round up if necessary Go back to the original numbers If the price of cheese goes up and your variable costs go by $3 what is your new break even in pizzas if you increase your price to $21 Round up if necessary Golden Company has a fleet of delivery trucks and has the following Overhead costs per month with the miles driven Miles Driven Total Costs March 50.000 194.000 Aprill 40.000 170.200 this is the low May 60.000 217.600 June 70.000 241.000 Use the High-Low method to…