Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. short grass incorporated is a distributor of golf

Short Grass Incorporated is a distributor of golf balls. Martin's Golf Supplies is a local...

80.2K

Verified Solution

Question

Accounting

image
Short Grass Incorporated is a distributor of golf balls. Martin's Golf Supplies is a local retail outlet which sells golf balls. Martin's purchases the golf balls from Short Grass Incorporated at $0.75 per ball, the golf balls are shipped in cartons of 72. Short Grass Incorporated pays all incoming freight, and Martin's Golf Supplies does not inspect the balls due to Short Grass' reputation for high quality. Annual demand is 155,520 golf balls at a rate of 2,991 balls per week. Martin's Golf Supplies earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data are available: $125.00 Relevant ordering costs per purchase order Carrying costs per carton per year: Relevant insurance, materials handling, breakage, etc., per year $0.77 1) If Martin's makes an order (1/12 of annual demand) once per month, what are the relevant total costs? 2) What is the economic order quantity? 3) Purchasing at the EOQ recommended level, how many deliveries will be made during each time period? 4) Purchasing at the EOQ recommended level, what are the relevant total costs

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The air temperature is measured every 6 hours for one week. The temperatures are given in...

Statistics
Q

If potential at the surface of earth is assigned zero value then potential at centre...

Physics
Q

A simple pendulum consists of string of length L and suspended mass m It is...

Physics
Q

120 If oil leaks from a tank at a rate of r t gallons per...

Calculus
Q

Evaluate the number HINT See Quick Examples on pages 430 and 432 C 13 10...

Algebra
Q

A business advertises that everything in the store is an additional 10% off the already...

Algebra
Q

Beverage International reports net credit sales for the year of $288,000....

Accounting
Q

Olive Corporation currently makes 12,900 subcomponents a year in one of its factories. The unit...

Accounting
Q

solution provide please Are there steps you could take to minimize your exposure...

Accounting
Q

OfficeMart has found an error in its data. The percentage of selling and administrative overhead...

Accounting
Q

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has...

Accounting
Q

Assume you have a 1-year investment horizon and are trying to choose among three bonds....

Finance