The break-even point is calculated to know what level of production is required to cover a company only fixed costs expenses. TRUE OR FALSE
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The break-even point is calculated to know what level of production is required to cover a company only fixed costs expenses.
TRUE OR FALSE
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- Given that: Sales = $300,000,000 Transportation cost = $15,000,000 Warehousing cost = $4,000,000 Inventory carrying cost rate (W) = 30% Cost of goods sold = $95,000,000 Other operating costs = $55,000,000 Average Inventory (AI) = $15,000,000 Accounts receivable = $35,000,000 What is the earning before interest and taxes? Group of answer choices 75,500,000 205,500,000 150,500,000 126,500,000 46,500,000The manager of your company told you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked you to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher net profit. What should you do?Which of the following accounts would be assigned a higher level of risk: Building or Merchandising Inventory? Explain your answer.
- Operation mangement An online shoe retailer's annual cost of holding inventory is 30 percent. The firm operates with a days-of-supply of 23 days, and assume there are 365 days per year. What is the inventory holding cost (in $s) for a pair of shoes that the firm purchased for $53 ? Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.A manufacturer procures a subassembly from a supplier. The annual demand is 145,000 units, the cost per unit is $4, the inventory-carrying charge is 12 percent, and the order cost is $225. For orders between 10,000 but less than 30,000, a five percent discount is applied, and for orders exceeding 30,000, a eight percent discount is applied. What is the optimal order quantity? Use the Quantity Discount Excel template to find your answer.Titan fitness makes barbells for crossfitters and wants to determine its break-even point. The total fixed cost for this business is $10000 and the variable cost is $100 per barbell. Titan fitness sells the barbell for $250 per unit. What is the break-even quantity? (Only enter a number, do not enter any units. Round your answer to the nearest whole number.
- All of the following statements concerning shortage costs are true Except: Shortage costs include loss of goodwill, loss of a sale, loss of a customer, loss of profits, and late penalties Shortage costs are difficult or impossible to measure with any accuracy High shortage costs favor small inventories It is the cost of having no items in the inventory when it is needed by customersDaily demand for a certain product is normally distributed, with a mean of 100 and a standard deviation of 15. The supplier is reliable and maintains a constant lead time of 5 days. The cost of placing an order is $10 and the cost of holding inventory is $0.50 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 360 days of the year. Your goal here is to find the order quantity and reorder point to satisfy a 90 percent probability of not stocking out during the lead time.a. What type of system is the company using?b. Find the order quantity.c. Find the reorder point.A manufacturer procures a subassembly from a supplier. The annual demand is 165,000 units, the cost per unit is $5, the inventory-carrying charge is 13 percent, and the order cost is $220. For orders between 10,000 but less than 25,000, a six percent discount is applied, and for orders exceeding 25,000, an eight percent discount is applied. What is the optimal order quantity? Use the Quantity Discount Excel template to find your answer.
- 20. Identifying true or false: I - Just-in-time purchasing is guided solely by the economic order quantity. II - Companies that implement JIT purchasing will switch their suppliers when another supplier offers alower price. III - Just-in-time purchasing describes the flow of goods, services, and information from the initial sourcesof materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations Group of answer choices All are false. T, T, F F, F, T All are true T, F, TSweets Bakery makes fat-free cookies that cost $1.70 each to prepare. Sweets expects 20% of the cookies to be imperfect. Sweets wants a 40% markup on cost and produces 150 cookies. Assume that Sweets can sell the broken cookies for $1.60 each. What should Sweets charge for each cookie? (Round your answer to the nearest cent.)The manager of the company told the employee to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked the employee to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher net profit. What should the employee do?