How sensitive is the EOQ to variations in demand or costs?
What will be an ideal response?
The EOQ is relatively insensitive to small changes in demand or setup or carrying costs because the cost curve is relatively shallow (flat) around the EOQ. This means that variations in setup costs, holding costs, or demand make relatively modest differences in total cost.
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The "budget limitation tactic" is often used by buyers who have been trained in negotiation
Indicate whether the statement is true or false
A traditional retailer contemplating a Web operation is concerned about its ability to ship small orders to individual consumers in a timely manner. Which aspect of its direct marketing strategy is the retailer questioning?
a. order fulfillment b. business definition c. data-base maintenance d. customer response
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation achieves the budgeted level of sales, what will be its margin of safety in dollars? Sales (50,000 units) $1,000,000 Costs: Direct materials$270,000 Direct labor 240,000 Fixed factory overhead 100,000 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 920,000 Pretax income $80,000
A. $275,862. B. $310,115. C. $150,000. D. $262,500. E. $172,420.
Under what conditions should a pending lawsuit be recognized in a company's financial statements? Under what conditions should the lawsuit be disclosed in the notes to the financial statements?
What will be an ideal response?