A partnership’s income-sharing ratio applies to partnership income after the salaries and interest are deducted.
What is a partnership?A partnership is a contract wherein parties, also referred to as business partners, decide to work together to further their shared objectives. A partnership may have one or more individuals, corporations, nonprofits, educational institutions, governmental bodies, or other entities as partners. Organizations may collaborate to broaden their reach and improve the chances that each will succeed in reaching its goals. A partnership might issue and hold stock or it might just be bound by a contract. Every partnership, even one that has not been reduced to writing, must have a partnership agreement in order to be formed. Although it is not legally necessary in common law nations, partners may benefit from a written partnership agreement that spells out the key elements of their relationship.
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to compensate for past racial discrimination in housing in an area, a property manager specifically sought to attract non-white tenants. this practice is
To compensate for past racial discrimination in housing in an area, a property manager specifically sought to attract non-white tenants. This practice is unlawful because it violates fair housing laws.
What do you mean by the house discrimination?Housing discrimination occurs when a person who is renting, purchasing, or selling a property is treated differently by someone else because they fit a specific description of a protected class.
A person who is non-White belongs to a group of people whose ancestry is not European. Certain jobs were essentially off-limits to non-White persons.
Federal housing discrimination is when a person is denied the right to rent or own a home because of their race, colour, religion, national origin, sexual orientation (including gender, gender identity, and sexual harassment), familial status, or disability.
Therefore, to compensate for past racial discrimination in housing in an area, a property manager specifically sought to attract non-white tenants. This practice is unlawful because it violates fair housing laws.
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aubrey is typing a 10 page research paper for her business law class on the branches of the us government. she decides to change the organization of the paper. which view would assist in performing this task?
Aubrey is writing a 10-page research project on the US government's branches for her business law class. She makes the decision to rearrange the paper's structure. This work would be made easier with the aid of outline view.
Business law , often called mercantile law or trade law, is the body of legislation that controls the rights, relationships, and conduct of individuals and businesses engaged in trade, commerce, merchandising, and sales. It is frequently regarded as a subset of civil law because it deals with both private and public law issues. Business law encompasses a variety of topics such as principal and agent, conveyance by land and water, merchant shipping, guarantees, marine, fire, life, and accident insurance, bills of exchange, negotiable instruments, contracts, and partnerships. Most of these categories fall under Financial law, a division of Business law with a focus on financing and financial markets. It can also be regarded to regulate business contracts, hiring practices, and the production
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what is the price of a treasury strips with a face value of $100 that matures in 8 years and has a yield to maturity of 8.0 percent?
The price is $36.24. The price of a treasury STRIPS is the discounted present value of the face value. In this question, the face value of the bond is $100, and the discount rate is 7%.
U.S. bonds known as Treasury STRIPS are offered at a discount to face value and are fully repaid when they mature.
STRIPS are treasury bonds that trade as separate securities for the principal and coupon payments.
Holders of STRIPS only get the final payment on the maturity date instead of coupon payments.
Only a financial institution or broker may hold STRIPS.
Initially, only bonds with a maturity of more than ten years qualified for STRIPS; however, the program has now been expanded to include additional notes or bonds.
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a signal: occurs when one party to a transaction has more information than the other party. is an agent trying to exploit an information advantage in a dishonest way. is an expensive action that is taken to reveal information. is an offer that conveys negative information about the product.
When an expensive action is taken to reveal information, a signal is produced.
What is information advantage means?The term "information advantage" refers to a legitimate advantage acquired through the ongoing, flexible, incisive, and resilient use of information and information systems. A firm or person with an information advantage has specialized knowledge that gives them a strategic or tactical edge in a particular situation.
What is the advantage of data and information?You will have information once you group, combine, manage, and evaluate the data. You can discover trends, connections, or fresh perspectives on how your organization operates using information. Additionally, the knowledge can assist you in developing business analytics and plans. transfers and deposits made via mobile apps on smartphones. electronic signatures that don't require printing out. Lending approvals on the fly without visiting a loan office. Automated bill payment helps clients meet their monthly responsibilities on time.
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Take a look at the GDP components for the United States in the World Economic Statistics screen (ECST) below. Which GDP component was the biggest contributor at the time that this screen was captured?
Consumer expenses or personal consumption are simply the biggest GDP developer in the United States.
What is the.biggeat contributor to GDP?Consumer spending is the most important component of GDP, accounting for roughly two-thirds of GDP throughout the year. This indicates that consumers' spending decisions are the primary driver of the economy. When you look back in time, you will notice that you have not jumped too far. Rising consumer spending (goods and services) and private domestic investment are the main drivers of this increase, as government spending stagnates, imports outpace exports, and international trade contributes negatively overall.
The United States has the world's largest consumer market economy. Residents in the United States will spend approximately $12.5 trillion on durable and non-durable goods by 2020. That is more than $5 trillion less than the previous year. Consumer spending may not recover until 2022, and given the annual population growth of 2.5 million, the average American is spending the same amount as in 2019.
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you short-sell 200 shares of tuckerton trading co., now selling for $50 per share. what is your maximum possible gain, ignoring transactions cost?
No limit, To achieve a point when your loss is zero, the price of an option must increase to include the fair value in extra the already paid premium (breakeven).
What is the highest possible profit?To achieve a point when your loss is zero, the value of the option must increase to include the market price in extra to the existing premium (breakeven). As a call buyer, you have unlimited potential for profit because there is no increase in price cap.
The maximum gain is the strike price multiplied by the premium minus 100. Paid premium = maximum loss.
How are option gains and losses determined?The money from the sale, if the holder decides to sell the stocks or bonds that just bought at their market price, will also be money she earns. Subtract the amount she spent from the amount she earned to determine her profit or loss. That's all there is to it.
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a broker works on a 50/50 commission split with her firm. if she lists a house at $156,000 for 6% commission and sells it for $154,000, how much will she receive?
The 06 is the full commission amount for a total of $9,240.
A sales fee is a sum of money paid to a worker upon the final touch of a project, normally promoting a sure amount of goods or services. Employers every now and then use sales commissions as incentives to increase employee productivity. A fee can be paid in addition to profits or in place of revenue.
Commission refers to the reimbursement paid to an employee after completing an assignment, which is, often, promoting a sure wide variety of products or services. selling products or services is tough. specialists who're into sales and advertising address hard competition.
A price paid for offerings is generally a percentage of the total price. instance: town Gallery sold Amanda's portrait for $500, Amanda paid them a ten% commission, and so ended up with $450 for the portrait.
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when you create a script, you should include the command that sets the particular shell to use on .
Shell scripts are collections of commands that you frequently use. Normally, this process is started by typing the script's name onto the command line.
As an alternative, you can utilise cron-enabled scripts to automate processes. Scripts can also be used in the UNIX start and shutdown process, where init scripts dictate how daemons and services should operate.
Open a brand-new, blank file in your editor to start writing a shell script. Any text editor will work, including vim, emacs, gedit, dtpad, etc. Vim or emacs are two more sophisticated editors that you might want to consider because they can be set up to recognise shell and Bash syntax and can be a huge help in commands.
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the cobit framework primarily relates to group of answer choices best practices and effective governance and management of private companies. best practices and effective governance and management of public companies. best practices and effective governance and management of information technology. best practices and effective governance and management of organizational assets.
The COBIT framework places a strong emphasis on regulatory compliance, enables businesses to derive greater value from it.
Which of the following control elements is included in the analysis framework for internal control systems?An internal control structure must be implemented and followed throughout the business in order to accomplish these goals. The control environment, risk assessment, control actions, information and communication, and monitoring are the five elements that make up the internal control framework.
Which one of the aforementioned is an illustration of an IT control structure for IT governance?
While risk response is an important part of the ERM framework, it is not included in the COSO internal control structure.
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as defined by maloni and benton: the power of a supply chain member [is] the ability to control the decision variables in the supply strategy of another member in a given chain at a different level of the supply chain. it should be different from the influenced member's original level of control over their own supply strategy.
As defined by using Malone and Benton the energy of a power supply member is the potential to manipulate the selection variables within the supply method of another member in a given is True.
Supply refers to the number of products a supplier gives to customers. supply and call for are key gamers in figuring out charges and goods consumption or services. The regulation of supply states that having higher demand is an effective indication for suppliers to boom deliver.
The law of delivering and call for combines two fundamental economic ideas describing how changes inside the fee of an aid, commodity, or product affect its supply and call for because the fee will increase, delivery rises whilst call for declines. Conversely, because the charge drops deliver constricts even as the call for grows.
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What aspect of marketing contains, protects, displays, increases the utility, and promotes a product, as well as conveying the product and brand messages?.
Packaging is a subset of advertising the place a manufacturer designs and develops the wrapper or container to aid its transport, handling, delivery, and communicate the manufacturer and product records by making it seem to be attractive.
To facilitate safety and resource product storage and transportation.
What is the significance of packaging in marketing?Packaging is so an awful lot extra than simply protecting a product. It's an necessary advertising tool, which helps branding, emphasizes the product's great aspects and creates an unforgettable experience for the customer. It's a gateway that can increase your product – and enterprise – to the subsequent level.
With the increasing demand for packaging, many businesses have started discovering methods and methods to sell their products thru higher designing and packaging.
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https://brainly.com/question/27992495#SPJ4g what valuation should be recorded for noncash assets transferred to a partnership by one of the partners?
On the day that they are transferred to the partnership, non-cash assets ought to be valued at their fair market value.Partner assets are deducted from the appropriate asset account and credited to the partner's Capital account in their entirety.
Honest evaluation (FMV) in land is the resolved value that a property will sell for in an open market.A willing buyer and seller who are both reasonably knowledgeable about the property in question agree on the FMV.
What is an illustration of a fair market price?
For instance, the fair market value of a home is $310,000 if the seller lists it for $350,000, an interested buyer offers $300,000, and the buyer and seller negotiate and agree on that amount.
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trinity needs to write up a report on native wildlife in her texan town for her work at a real estate company. what is her best first step?
Trinity is assigned to produce a presentation on the local animals in her Texan town as part of their job at such a real estate firm. Whatever should she accomplish first She needs to discover her identity.
As mentioned in the beginning of this section, some reports might require additional legal scrutiny. To ensure a professional paper, have a group of individuals review it independently without marking changes, errors, as well as questions along the way.
What tips do you have for writing a progress report Discuss the current work, including that of the people, things, methods, and locations At the beginning of the report, state the latest finish date of the project. Describe the difficulties at hand, but avoid discussing possible issues.
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what type of organizations benefit from a savings in pension benefits when switching from a defined-benefit plan to cash balance plans? group of answer choices organizations with many retired employees organizations with highly skilled, young employees organizations with many experienced employees organizations with many young employees organizations with a few skilled employees
An employee is guaranteed an employer contribution from a cash balance plan, a kind of defined benefit pension plan, equivalent to a percentage of annual earnings.
What advantages do businesses that choose to use pension funds get?A pension fund is regarded by the IRS as a qualified retirement plan and is eligible for tax deductions for contributions. The IRS provides a tax deduction for donations made to a qualified plan in order to promote retirement savings.
Who is helped by a pension plan?An employee benefit known as a pension plan requires the company to make regular contributions to a fund that is put aside to pay eligible employees after they retire.
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if the fed decides it needs to decrease both the aggregate demand and the money supply, then it will institute:
Answer: It would follow tight monetary policy
Explanation: Hope this was helpful
clabber company has bonds outstanding with a par value of $117,000 and a carrying value of $107,500. if the company calls these bonds at a price of $103,500, the gain or loss on retirement is: multiple choice $13,500 loss. $9,500 loss. $9,500 gain. $4,000 gain. $4,000 loss.
$4,000 gain on the cancellation of securities (bonds) on retirement.
What is gain or loss on retirement?A security's (bond's) carrying value (CV) is the net value of the bond after deducting the discount or adding the premium on the par value. This will be taken into account when calculating gains on securities retirement (bonds). The issuer recognises a loss on retirement if the price paid to retire a bond is greater than the carrying amount of bonds. However, if the price paid is less than the carrying amount of the bonds at the time of retirement, the issuer records a gain on bond retirement.
Calculating the gain on the retirement or cancellation of securities (bonds):
Gain on Bond Retirement = Carrying value of Bond Call price of Bond = $ 107 500 $ 103 500 = $ 4 000.
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The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property &equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 20,300 33,100 44,200 409,400 312,000 S819,000 $ 59,500 61,400 519,000 106,700 72,400 S819,000 $ 41,700 41,500 95,500 150,500 84,700 S 413,900 $ 95,500 69,900 152,900 29,700 65,900 413,9005 819,00 6131000- S 436,500 (237,500) 162.400) $ 795,000 (400,700) 311,700 $ 82,600 $22.7 45 45% $ 33,700 $ 151,500 BLUE WATER COMPANY PRIME FISH COMPANY Ratio Profitability ratios: Return on equity Return on assets Financial leverage percentage Net profit margin Earnings per share 2. Turnover ratios: Total asset turnover Fixed asset turnover Receivable turnover Inventory turnover 9 Liquidity ratios 10 Current ratio Quick ratio 12. Cash ratio Solvency ratios 13. Debt/equity ratio Market ratios 14 Pricelearnings ratic 15. Dividend yield ratio
Direct expenses, or cost of goods sold (COGS), are subtracted from net sales, which are gross revenues minus returns, allowances, and discounts, to determine the gross profit margin. The gross profit margin ratio is determined by dividing that number by net revenues and then multiplying it by one hundred percent.
The Gross Profit Ratio (GP Ratio) of Blue Water Company is equal to (429,000-235,000)/429,000*100, or 45.22 percent. The Prime Fish Company Go Ratio is equal to (790,000-401,200)/790,000*100, or 49.22 percent.
The income before interest and interest expense divided by the times interest earned ratio is equal to 100 Blue water company = 194,000/163400 = 118.7% Prime fish company = 388,800/312,200 = 124.54%.
Cash coverage ratio is the ratio of cash and cash equivalents to current liabilities. Blue Water Company is 42,200 times 93,000, or 45.37 percent. Prime Fish Company is 19,800 times 34,600, or 57.23%.
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you are working with team members to complete a project for school. person 1 has not been as active as they could during the brainstorming process. about one week into the project, person 1 suggests an alternative way to complete a task. you are confident this new approach would be counterproductive. how do you respond to person 1's request?
Let Person 1 know that he is not doing his share and communicate that you are willing to switch tasks or organize the work differently. Perhaps he just needs moral support or a different task.
- The choice that was just suggested fits the situation.
1. Describe the issue you wish to fix.
It could be simpler to say than to do. Keeney recounts a PhD student who is struggling to find an adviser and a topic for their dissertation. The pupil fumbles for ideas and expresses them as negatives rather than positives, with just the haziest notion of a purpose. It's "not intriguing to me," "it seems too hard," "it seems like it would take too much time," and "I don't believe I could accomplish it."
2. Determine a potential solution's goals.
The German energy company hired Keeney to perform these services, and he has also performed these services for a number of government organizations, including the Department of Homeland Security and the Energy Department.
3. Attempt to come up with individual answers.
Organizations should urge that employees first try to come up with their own answers before starting a collective brainstorming session.
4. Once you have a clear understanding of your issues, your goals, and your unique solutions, work as a group.
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If an economy can increase its steady annual growth rate from 1 percent to 1.5 percent, this reduces the time it takes for the economy to double in size by approximately ________years. O 5 O 8
O 33 O 17 O 23
The time it takes for an economy to double in size can be shortened by about 23 years if it can raise its constant annual growth rate from 1 percent to 1.5 percent.
When annual growth rates rise from 1% to 1.5%, the time decreases by 23 years.
Rule 70 states that the time it will take the economy to double is equal to 70 divided by the growth rate.
If the growth rate is 1%, it will take the economy 70 years to double in size.
Given a 1.5 percent growth rate, it will take the economy 47 years to double in size.
Time decreases by 70 years, 47 years, and 23 years when annual growth rates rise from 1% to 1.5%.
Growth rates are the changes in a particular variable's percentage over a given period of time. Growth rates can be either positive or negative, depending on whether the variable's size is changing over time or not. Growth rates were initially employed by biologists to study population sizes, but they have since been used to other fields such as economics, business management, and investment returns.
Increase rates for investors often reflect the compounded yearly rate of growth of an investment, or the revenues, earnings, or dividends of a corporation. Gross domestic product (GDP) and unemployment are two macroeconomic terms that are also analyzed using growth rates. Two popular types of growth rates used for analysis are expected forward-looking and trailing growth rates.
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Oil prices are denominated in terms of _____ in international commodities markets.
Answer:
Dollars.
Explanation:
The price of nearly every raw material the world consumes today, from oil to wheat to copper, is set in dollars.
the purpose of heat treating annealed glass (results are tempered or heat-strengthed glass) is to induce permanent compressive stresses in the edges and faces of the glass which makes the glass stronger than annealed glass and more resistant to thermal stress and impact.
True, Heat-treating annealed glass is done to create permanent compressive stresses in the edges.
Heat treatment is the process of heating metal, holding it at that temperature, and then cooling it back down. The mechanical properties of the metal part will change during the process. This is due to the fact that high temperatures change the microstructure of the metal.
Heat-treating metal can soften it and improve its formability. It can make parts harder in order to increase strength. To increase abrasion resistance, it can apply a hard surface to relatively soft components. It can form corrosion-resistant skin to protect parts that would corrode otherwise.
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Maple Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, Brady, who immediately elected S corporation status. On December 31 of the current year, Maple distributed $38,500 cash to Brady.
What are the amount and character of gain Brady must recognize on the distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable. If the answer is "0", select "None".)
a. At the time of the distribution, Brady’s basis in his Maple Corporation stock was $45,200.
Amount Character
Gain
Brady's basis stock gained $38,600, which equals $0 in capital gains, Brady's basis stock gained $9,500, which equals $23,500 in long-term gains, and Brady's basis gained $0, which equals $33,000 in long-term gains.
How can I figure stock gain?Both short-term and long-term capital gains are possible with stocks. Capital gains for durations shorter than a year or a year and a half are referred to as short-term capital gains. Long-term capital gain is profit from investments for durations longer than a year or a calendar year.
Brady has owned shares of Marple Corp. for three years, therefore there will be a long-term capital gain.
Using the following formula, one may determine capital gain:
Capital gain = cash distributed - Basis stock
For basis stock was $38,600
Capital gain = $33,000 - $38,600
Capital gain = -$5,600
Brady's stock basis decreased from $38,600 to $5,600 as a result of the negative capital gain outcome, indicating that Brady did not experience a capital gain. Brady consequently recorded no capital gain.
For basis stock was $9,500
Capital gain = $33,000 - $9,500
Capital gain = $23,500
This shows that Brady's stock basis decreased to $0 and Brady realized a long-term capital gain of $23,500.
For basis stock was $0
Capital gain = $33,000 - $0
Capital gain = $33,000
This indicate the Brady's stock basis would remain at $0 and Brady recognized $33,000 long term capital gain.
Brady's capital gain therefore consists of $33,000 in long-term capital gains at basis stock 0 and $33,000 in short-term capital gains at basis stock 0 and $23,500 in long-term capital gains at basis stock 9,500.
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if the debt payment (mortgage payment) is $100,000 and the net operating income (noi) is $130,000, what is the debt coverage ratio (dcr)?
The debt coverage ratio (dcr) will be 1.3
What is DCR?
The debt service coverage ratio compares the cash flow of a company to its debt commitments. Businesses can use DSCR to determine whether they have enough net operating income to repay loans. Divide net operating income by the total debt service, including principal and interest, to obtain the debt service coverage ratio (DSCR).2.0 or above A DSCR of at least 2 is regarded as very strong, despite the fact that there is no industry standard. The minimal DSCR standards that many lenders will establish range between 1.2 and 1.25.To know more about Debt here
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when price discriminating, a company owner should set price for each customer. no higher than marginal cost at the competitive market equilibrium at or just below the marginal benefit equal to marginal cost
when price discriminating, a company owner should set price for each customer.just below the marginal benefit equal to marginal cost
What can we say about a firm that is perfectly price discriminating?
First-degree discrimination, or perfect price discrimination, occurs when a business charges the maximum possible price for each unit consumed. Because prices vary among units, the firm captures all available consumer surplus for itself or the economic surplus.
What is marginal benefit and marginal cost?
Marginal benefit is the maximum amount of money a consumer is willing to pay for an additional good or service. The consumer's satisfaction tends to decrease as consumption increases. Marginal cost is the change in cost when an additional unit of a good or service is produced.
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cumberland farms, a convenience store chain based in framingham, massachusetts, has a reputation for empowering its employees. in part, the company does this through online apps that allow workers to give input to decisions. if cumberland farms wanted to take other actions to empower its workforce, which of the following should it consider?
The correct answer is adopt a compensation plan that pays employees more when the company meets its goals.
Discuss the company's progress toward achieving its strategic goals on a regular basis, as well as the dangers and weaknesses that provide difficulties. Increase the amount of decisions that employees can make for themselves regarding how they carry out their work without management permission.
Giving your team members the authority to act and make decisions within your company is a key component of empowering your workers. It also implies that there is mutual trust and understanding to guarantee that these behaviors are consistent with corporate objectives. For a business to expand sustainably, employees need to feel empowered.
In fact, research has shown that "when people feel empowered at work, it's related with higher job performance, job satisfaction, and devotion to the firm," according to the Harvard Business Review.
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an owner has a home with a great view of the river from her location, which is across the road from a vacant lot that has an even better view. unfortunately if the vacant lot sold, any building would obscure her view. what can she do to preserve her view?
She can do nothing about it to preserve her view.
Recollect, voluntary alienation truely approach you're selling your home. This is the type of belongings transfer you want to be part of! Involuntary alienation essentially manner the property is being transferred without the proprietor consent.
Consent: Consent of each the important and the agent is essential to form an agency courting. Greater specially, each the predominant and the agent need to consent to the agent appearing at the essential's behalf and situation to the fundamental's manipulate.
The most commonplace prevalence of involuntary alienation is whilst a financial institution evicts the residents because of unpaid loan balances. In different words, foreclosures is a situation where one loses their property due to unpaid debts.
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Brand ________ refers to the degree to which customers can identify a brand under a variety of circumstances.
Brand recognition refers to the degree to which customers can identify a brand under a variety of circumstances. Brand recognition is the extent to which a consumer can correctly identify a particular product or service just by viewing the product or service's logo, tag line, packaging or advertising campaign.
Brand recognition can also be triggered via an audio cue, such as a jingle or theme song associated with a brand. The five stages of brand recognition are awareness, preference, reputation, trust and loyalty. Brand awareness familiarizes the public with a product and differentiates it from competing brands. Businesses that maintain high levels of brand awareness are likely to generate more revenue because consumers are more likely to buy familiar brand names compared to unknown ones.
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Belinda thinks her company should use a push strategy for its new product line because it needs to educate consumers on how to use the product. How does a push strategy promote products?.
Push strategy promote products through personal selling.
What is personal selling?Personal selling occurs when a salesman meets with a potential client to close a deal. Many salesmen employ a nine-step sequential sales procedure. Some salespeople write scripts for the entire sales process or just a part of it. The sales process is used in both in-person and telemarketing engagements. Around the fourth century BCE, the Socratic philosophers voiced some reservations with the novel sale. Their analysis focused mainly on how selling's more social components would be disrupted. The social perspective that emphasizes the ties that bind society's constituents was fostered by traditional modes of transaction. People shared in their neighbors' suffering, for instance, during times of starvation or drought.
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An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after a(n) ______ audit.
An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after an indepenfent audit.
What is independent audit?
An independent audit can be described as the examination of the financial records, as well as the accounts, business transactions, accounting practices, as well as the internal controls of a charitable nonprofit by an "independent" auditor.
It should be noted that the evaluation and unbiased opinion of the accuracy of a firm's financial statements is oner od the thing that can be associated to the indepenfent audit.
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garden variety flower shop uses 187.5 clay pots a week. annual carrying costs are $0.60 per pot per year. ordering costs are $20 per order. lead time is 2 weeks. the store operates 48 weeks per year. how much should the store order at one time?
The store should order 745 clay pots at one time. The Economic Order Quantity is 745.
What is Economic Order Quantity?The optimal number of units to buy to satisfy demand while reducing inventory expenses including holding costs, stock outs, and order costs is known as the economic order quantity (EOQ).
Economic order quantity is a formula used by businesses to determine the ideal order amount in an effort to reduce the expenses associated with logistics, warehouse space, stock outs, and overstocks. The EOQ model's objective is to establish the ideal quantities you ought to have.
Given,
Weekly Demand (d) = 187.5 clay pots
Annual demand (D) = 187.5*8
= 9000
Ordering cost (S) = $20
Carrying Cost (H) = $0.60 per pot
[tex]EOQ=\sqrt{\frac{(2\times D\times S)}{H} }[/tex]
[tex]EOQ=\sqrt{\frac{(2\times 9000\times 20)}{0.60} }[/tex]
[tex]EOQ=\sqrt{\frac{360000}{0.60} }[/tex]
EOQ = 774.6≈775
Therefore, the store should order 745 clay pots at one time.
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