Purchases 30000 containers of carbonated water per

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purchases 30,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $30 per container via an external shipper. To reduce costs, the company located an independent supplier in Missouri who is willing to sell 30,000 containers at $20 each, delivered to Crush Company's Shipping Division in Missouri. The company's Shipping Division in Missouri has excess capacity and can ship the 30,000 containers at a variable cost of $2.50 per container. What is the total cost to Crush Company if the carbonated water is purchased from the local supplier? Selected Answer:$ 900,000 Question 8 1 out of 1 points The seller of Product A has no idle capacity and can sell all it can produce at $20 per unit. Outlay cost is $4. What is the opportunity cost, assuming the seller sells internally? Selected Answer:$16 Question 9 1 out of 1 points Section 482 of the U.S. Internal Revenue Code governing the taxation of multinational transfer pricing recognizes that transfer prices can be: Selected Answer:Both A and C are correct. Question 10 1 out of 1 points Exertion towards a goal is: Selected Answer:effort Question 11 1 out of 1 points A costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods is called: Selected Answer:backflush costing Question 12 1 out of 1 points Answer the following questions using the information below:The following information applies to Labs Plus, which supplies microscopes to laboratories throughout the country. Labs Plus purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.Annual demand (weekly demand= 1/52 of annual demand) 15,600 unitsOrders per year 20
Lead time in days 15 daysCost of placing an order $100What is the reorder point? Selected Answer:643 units Question 13 1 out of 1 points Answer the following questions using the information below:Owen-King Company sells optical equipment. Lens Company manufactures special glass lenses. Owen-King Company orders 5,200 lenses per year, 100 per week, at $20 per lens. Lens Company covers all shipping costs. Owen-King Company earns 30% on its cash investments. The purchase-order lead time is 2.5 weeks. Owen-King Company sells 125 lenses per week. The following data are available:Relevant ordering costs per purchase order $21.25Relevant insurance, materials handling, breakage,and so on, per year $ 2.50What is the economic order quantity for Owen-King Company? Selected Answer:161 lenses Question 14 1 out of 1 points A demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line is referred to as: Selected Answer:just-in-time purchasing Question 15 1 out of 1 points The economic order quantity ignores: Selected Answer:Both A and C are correct.

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