Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost characteristics.
Sales price $ 550 per smoker
Variable costs 330 per smoker
Fixed costs 143,000 per month
Hunter & Sons is subject to an income tax rate of 40 percent.
Required:
a. How many smokers must Hunter & Sons sell every month to break even?
b. How many smokers must Hunter & Sons sell to earn a monthly operating profit of $39,600 after taxes?
Answers: 1
Business, 22.06.2019 03:20
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Business, 22.06.2019 12:30
M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.
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Business, 22.06.2019 13:40
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Business, 22.06.2019 14:10
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Answers: 2
Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the foll...
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