The firm is considering a selling price of $ 135 to retailers. The number of households considered to be within the potential market in the marketing area is 8,500,000. Households only buy new grills every 10 years. What is the market share that the business will have to achieve to break even? Would you enter this market?
Does Joe have enough in savings to pay for the down payment and all of the closing costs? Solution Plan: Complete the following questions based upon the information in the video and other information provided in the worksheet. 1. Joe figures that with overtime he will average 40 hours a week for 52 weeks a year. If his current wage is $15.00 per hour, how much will he make per year?15*40*52= $31,200.00 annually 2.
FIN- 515: Managerial Finance Homework 2: Chapter 3 Problems: (3-1) Days Sales Outstanding: Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5.
Question 1. a) How many parts should you purchase each time you place an order? R=800- ORDERING COST Annual carrying cost of capital= 20% .20 lost per dollar R= 50000 H= .80 r= .20 cost per dollar C= unit cost H=rC Qo= √2RS/H= √(2(50,000)(800)/.8) = 10,000 10,000 parts should be purchased each time an order is placed. (b) To satisfy annual demand, how many times per year will you place orders for this part? R/Qo= 50,000/10,000= 5 times per year Question 2: (a) Determine BIM’s total annual cost of production and inventory control. Q= 4 weeks supply = 1600 units R= 400 units a week= 20000 units/ year C= purchase cost per unit= $1250 X (1-.20)= 1,000 H= holding cost= rC= $200 per unit / year S= setup cost= 2000 + 93.75 = $2,093.75 Setups per year= R/Q= 20000/1600= 12.5 Annual setup cost= (R/Q)(S)=12.5X $2,093.75= $26,172 Annual Holding cost= (q/2)(H)= (1600 /2)X $200= $160,000 Total Annual Cost= Annual Setup Cost+ Annual Holding Cost Total Annual Cost= 26,172+160,000 BIM’S Total Annual Cost= $186,172 (b) Compute the economic batch size and the resulting cost savings.
I then took the number of gallons I use a year and multiplied it with 125,000 BTUs, which is the amount of energy in one gallon of gasoline, to find the total number of BTUs I use in one year (50,000,000). 2. To find out the heat energy to heat the water of my house I first weighed my container (107 g). Then I turned on the water faucet so that it dripped about 1 drip per second. I then captured the water in my container for 15 minutes.
* By January 2012, Omega began using Manufacturer representatives to sell to distributors. * Through 2011, Omega continued to add distributors and had secured 60 across North America. * They had sold about 50,000 of them, making 1million in sales. * Ebert wants to increase growth and sales each year. 2.
Consider these scenarios to see how prices for imported goods would be affected if foreign workers were paid the U.S. federal minimum wage of $5.15 in 2006. Be sure to show your calculations. 1. A team of three laborers in Mongolia makes rugs by hand for export to the United States. The team works 14 hours a day, six days a week, 50 weeks a year, and is able to make 12 rugs a year.
Littlefield Case Capacity Assessment: how many machines to buy at each stage Based on the data for 50 days of simulated operations following observations were made: Average Demand: 12.22 orders per day, standard deviation: 3.55 orders per day Average Jobs completed: 11.875 orders per day Average Utilization of machine 1: 0.896 Average Utilization of machine 2: 0.93 Average Utilization of machine 3: 0.898 Average Capacity = Average Jobs completed / (Average Utilization * # of machines) Therefore, average Capacity of machine 1: 4.42 orders per day Average Capacity of machine 2: 12.77 orders per day Average Capacity of machine 3: 13.22 orders per day CVa = Std. Dev of Demand / Mean Demand = 0.29 CVp is assumed to be zero Therefore, average waiting time in the queue turned out to be 0.6 hours, 0.68 hours, and 0.66 hours respectively at stage 1, stage 2 and stage 3. Considering these waiting times, the new throughput rate at each stage came to be 11.93, 9.37 and 9.71 orders per day respectively at stage 1, stage 2 and stage 3. If one more machine is bought at each stage the capacity will increase and the average waiting time in the queue would get reduced. The new throughput rate (including the average queue waiting time) at each stage came to be 16.37, 21.78 and 22.55 orders per day respectively at stage 1, stage 2 and stage 3.
He will, however, have to spend an extra hour each morning adjusting the computerized diagnostic device. What will be the impact on his productivity if he purchases the device? Problem 3: Joanna French is currently working a total of 12 hours per day to produce 240 dolls. She thinks that by changing the paint used for the facial features and fingernails that she can increase her rate to 360 dolls per day. Total material cost for each doll is approximately $3.50; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she thinks she should be making $10 per hour for her time.
Customer Analysis The total industrial consumption of cyano-acrylates which the new Bond-A-Matic 2000 would dispense was 265,000 pounds in FY 1978, expected to grow to about 335,000 pounds in FY 1979. Across 16 SIC categories, approximately 174,909 firms currently used cyano-acrylates (at a 15.5% market penetration.) 11% of CA users, i.e. approximately 19,240 firms used over 10 pounds of CAs per year, comprising at-least 75% of total current market. Assuming that growth in the CA segment stagnates, and that only heavy CA applicators would be interested in dispensing equipment the total market is still estimated at 19,240 users.