Deluxe Jewelry Corporation produces quality jewelry items for various retailers. For the coming year, it has estimated it will consume 500 ounces of gold. Its carrying costs for a year are $2 per ounce. No safety stock is maintained. If the EOQ is 100 ounces, what would be the estimate for Deluxe Jewelry' total carrying costs for the coming year?
a. $200
b. $250
c. $100
d. $1,000
C
100 oz/$2 per oz = 50 oz average inventory * $2 carrying cost per oz = $100 total carrying cost.
You might also like to view...
When an accountant is asked to compile financial statements that omit substantially all of the required disclosures, which of the following actions is appropriate?
a. The CPA cannot accept the engagement. b. The CPA may accept the engagement. c. The CPA may accept the engagement if the CPA believes the omission is not undertaken to mislead users. d. The CPA must express an adverse opinion.
In the examples given for employee violations of the U.S. Department of Defense Code of Conduct, what were the common punishments?
a. demotions and firings b. reprimands and demotions c. monetary fines d. imprisonment
List four guidelines to consider when constructing a line chart
What are the various pricing tactics that a business can use?
What will be an ideal response?