Globe inc. is a distributor of dvds. dvd mart is a local retail outlet which sells blank and recorded dvds. dvd mart purchases tapes from globe at $25.00 per dvd; dvds are shipped in packages of 60. globe pays all incoming freight, and dvd mart does not inspect the dvds due to globe's reputation for high quality. annual demand is 312,000 dvds at a rate of 6,000 dvds per week. dvd mart earns 15% on its cash investments. the purchase-order lead time is one week. the following cost data are available:

relevant ordering costs per purchase order $114.50
carrying costs per package per year:
relevant insurance, materials handling,
breakage, etc., per year $ 4.50

11) what is the economic order quantity?
a) 64.08 packages
b) 21.04 packages
c) 37.50 packages
d) 72.03 packages

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct. d.

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?