Question

13) A furniture showroom expects to sell 250 sofas a year. Each sofa costs the $300,...

13) A furniture showroom expects to sell 250 sofas a year. Each sofa costs the $300, and there is a fixed charge of $500 per order. If it costs $100 to store a sofa for a year. In your asnwer provide the storgae cost function, reoder cost function, the total cost fuction, and use these information to answer how large should each order be and how often should order be placed to minimize inventory costs?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A bookstore expects to sell 400 calculus textbooks during the next year. It costs $⁢4 to...
A bookstore expects to sell 400 calculus textbooks during the next year. It costs $⁢4 to store one calculus textbook for one year. To reorder, there is a fixed cost of $⁢12.50, plus $⁢0.50 for each calculus textbook ordered. In what lot size and how many times per year should an order be placed to minimize inventory costs?
Simpson’s Shoes expects to sell 315 pairs of a certain running shoe in a year. There...
Simpson’s Shoes expects to sell 315 pairs of a certain running shoe in a year. There is a fixed charge of $140 per order and each pair of shoes cost the store $7. It costs the store $8 to store a pair of shoes for a year. Find the inventory cost as a function of ONLY the number of shoes/order. Use methods of Calculus shown recently in class to minimize the inventory costs. Give appropriate units. x=____________________________ r=____________________________ Work-> Minimum...
A jewelry store expects to sell 120 diamond bracelets during the next year. It costs $2.25...
A jewelry store expects to sell 120 diamond bracelets during the next year. It costs $2.25 to store one diamond bracelet for one year. There is a fixed cost of $15 for each order. Find the lot size and the number of orders per year that will minimize inventory costs.
A sporting goods store sells 100 pool tables per year. It costs ​$50 to store one...
A sporting goods store sells 100 pool tables per year. It costs ​$50 to store one pool table for a year. To​ reorder, there is a fixed cost of ​$25 per shipment plus ​$18 for each pool table. How many times per year should the store order pool​ tables, and in what lot​ size, in order to minimize inventory​ costs?
(ECP)A sporting goods store sells 100 pool tables per year. It costs $20 to store one...
(ECP)A sporting goods store sells 100 pool tables per year. It costs $20 to store one pool table for a year. To reorder, there is a fixed cost of $40 per shipment plus $16 for each pool table. How many times per year should the store order pool tables, and in what lot size, in order to minimize inventory costs?
The Rhodes Furniture store gets an average of 300 customers per shift. The manager of Rhodes...
The Rhodes Furniture store gets an average of 300 customers per shift. The manager of Rhodes wants to calculate whether she should hire 1, 2, 3, or 4 salespeople. In deciding how many cashiers to keep open each Saturday, she considers two factors: customer waiting time (and the associated waiting cost) and the service costs of employing additional checkout clerks. Checkout clerks are paid an average of $8 per hour. When only one is on duty, the waiting time per...
Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300 workstations...
Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300 workstations (at a sales price of $3,100 each) for 2019. The workstations’ manufacturing costs include the following. Direct materials $ 790 per unit Direct labor $ 380 per unit Variable overhead $ 60 per unit Fixed overhead $ 19,200 per year The selling expenses related to these workstations follow. Variable selling expenses $ 30 per unit Fixed selling expenses $ 3,100 per year Santana is...
1. Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300...
1. Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300 workstations (at a sales price of $3,900 each) for 2018. The workstations’ manufacturing costs include the following. Direct materials $ 720 per unit Direct labor $ 390 per unit Variable overhead $ 100 per unit Fixed overhead $ 19,200 per year The selling expenses related to these workstations follow. Variable selling expenses $ 40 per unit Fixed selling expenses $ 3,700 per year Santana...
Problems: Economic Order Quantity 1. Demand for the Deskpro computer at Best Buy is 1,000 units...
Problems: Economic Order Quantity 1. Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $4,000 each time an order is placed. Each computer costs Best Buy $500 and the retailer has a holding cost of 20 percent. A. Evalua te the number of computers that the store manager should order in each replenishment lot. B. What is the total inventory cost? C. What is...
Question 2 Jackson Inc. disposes of other companies’ toxic waste. Currently, Jackson loads the waste by...
Question 2 Jackson Inc. disposes of other companies’ toxic waste. Currently, Jackson loads the waste by hand into a truck, which requires labor of $15 per load. Jackson is considering a machine that would reduce the amount of time needed to load the waste. The machine would cost $154,500 but would reduce labor cost to $4 per load. Assume that Jackson averages 10,300 loads per year. How many years would it take for Jackson to recover the cost of the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT