Week 3 Template

Week 3 Template - Week3Template 2016 (20min.)

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Week 3 Template 20-16 (20 min.)   Economic order quantity for retailer. 20-22 (20 min.) JIT production, relevant benefits, relevant costs.  EXHIBIT 20-22 Annual Relevant Costs of Current Production System and JIT Production  System for Champion Hardware Company Relevant Items Relevant  Costs  under  Current  Production  System Relevant Costs  under JIT Production  System Annual tooling costs Required return on investment:  of average inventory per year  of average inventory per year Insurance, space, materials handling, and setup costs Rework costs Incremental revenues from higher selling prices
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Total net incremental costs Annual difference in favor of JIT production 21-18    (25 min.)   Capital budgeting methods, no income taxes. The table for the present value of annuities (Appendix A, Table 4) 1a. Net present value   b. Payback period =   c.   d. Accrual accounting rate of return based on net initial investment:
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This note was uploaded on 06/01/2011 for the course ACCT 433b taught by Professor Alfredcontreras during the Spring '11 term at National.

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Week 3 Template - Week3Template 2016 (20min.)

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