management statement not to exceed 100 words. 13-5. (Flotation costs and issue size) D. Butler Inc. needs to raise $14 million. Assuming that the market price of the firm’s stock is $95‚ and flotation costs are 10 percent of the market price‚ how many shares would have to be issued? What is the dollar size of the issue? Market price of the firms stock $95 Flotation cost 10 percent of market price Stock price is $95‚ so the flotation Costs are $9.50 (10% x $95) the firm receives $95 - 9.50 = $85
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information is available to determine the EOQ and R for a continuous review system (or P and T for a periodic review system). Because stockouts are costly relative to inventory holding costs‚ a 95 percent cycle-service level is recommended. Inventory holding costs are 21 percent of the value of each item (expressed at cost). The ordering costs ($20 for exhaust gaskets and $10 for drive belts) should not be increased to include charges for making customer deliveries. These charges are independent of the inventory
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• AND: NO ’replenishment to maximum level’ (holding costs are not negligible compared to order costs) YES Position in product life cycle New/phase-in material (no demand history) Established material Old/phase-out material • Last order Saisonal material NO YES Optimizing method • A or B item • Demand-driven OR MTO • Consumption-based OR demand planning with forecast for BOM top-level and X‚Y item • Inventory holding cost and order cost known • No planning in fixed order-/delivery-intervals
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40‚000 | | 100‚000 | | 404 | | | | 20‚000 | 20‚000 | 40‚000 | | 405 | | | | | 20‚000 | 20‚000 | | Total | 90‚000 | 120‚000 | 90‚000 | 60‚000 | 40‚000 | 400‚000 | 2 Physical Measures Method | Produced | Proportion | Joint Cost Allocation | Unit Cost | 401 | 90‚000 | (90‚000/400‚000)0.225 or 22.5% | (200‚000 x 0.225)45‚000 | (45‚000/90‚000)0.5 | 402 | 120‚000 | (120‚000/400‚000)0.3 or 30% | (200‚000 x 0.3)60‚000 | (60‚000/120‚000)0.5 | 403 | 90‚000 | (90‚000/400‚000)0.225 or 22.5%
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Average Variable Cost : 2002 $1‚011‚008** **$417‚004+$124‚101.20+$117‚903+$351‚000 2003 1‚142‚681.00** ** $520‚069+$171‚622.70+$79‚888+$371‚101 2004 1‚798.131.00 ** ** $915‚787.50+$320‚525.52 +$115‚999+$445‚819 Total $3‚951‚820.00 No.of Years 3 Average VC $1‚317‚273.00 Average Customers 8‚202.00 Average VC per unit $161.00 Fixed Cost $174‚000
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ordered 2*weekly demand for each week. When there was a back order‚ I ordered the # of back order plus weekly demand. Describe how you made the decision each week of how much to order. 2. I was panic when I had back order because the back order cost is high. I kept ordering the amount of back order but actually the income shipment was very low. Eg. The back order was 43‚ I ordered 50 but there was only 3 inbound. I know the wholesaler had oos too. Start from wk18‚ the entire supply chain realized
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accounting profits and economic profits for Gomez’s pottery. Explicit costs: $37‚000 (= $12‚000 for the helper + $5‚000 of rent + $20‚000 of materials). Implicit costs: $22‚000 (= $4‚000 of forgone interest + $15‚000 of forgone salary + $3‚000 of entreprenuership). Accounting profit = $35‚000 (= $72‚000 of revenue - $37‚000 of explicit costs); Economic profit = $13‚000 (= $72‚000 - $37‚000 of explicit costs - $22‚000 of implicit costs). 8-4 (Key Question) Complete the following table by calculating
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Strategic Cost Management ACCT90009 Seminar 1 Seminar 1 Subject Administration Introduction to SCM oduc o o SC Administration • Subject Coordinator Dr. David Huelsbeck Email: david.huelsbeck@unimelb.edu.au Room: 08.028‚ The Spot Phone: +61 3 9035 6256 Consultation Hours: Monday 4:15pm – 6:15pm • Seminars: Tuesday: 2.15 pm – 5.15 pm‚ FBE ‐ Theatre 211 (Theatre 2) Thursday: 6.15 pm – 9.15 pm‚ Alan Gilbert ‐ Theatre 2 Teaching Format and Resources • Seminar Format 3 hour seminar
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inventory holding cost rate is $3 per unit‚ and the cost to place an order is estimated tobe $50. Calculate the following:a) Average inventory level• EOQ sqrt(2DS)/H• sqrt(2*5200*50/3)= 416b) The number of orders placed per year• 5200/416= 12.5 per yearc) The total annual inventory holding cost• $3x416/2= 624 holding cost(Holding cost of annual inventory times the average inventory dived by 2)d) The total annual ordering cost• Cost to place order is $50 x 4= $200e) The total annual cost• $3 per unit
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customer service is inadequate. Parts Emporium tries to backorder the customer orders not immediately filled from stock‚ but some 10 percent of demand is being lost to competing distributorships. Because stockouts are costly‚ relative to inventory holding costs‚ McCaskey believes that a cycle-service level of at least 95 percent should be achieved. Parts Emporium‚ Inc. was formed in 1973 as a wholesale distributor of automobile parts by two disenchanted auto mechanics‚ Dan Block and Ed Spriggs. Originally
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