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    Capitulo 28: Income Statement Current Policy New Policy

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    thalibrit
    The document contains 3 sections that analyze income statements and cash flows for current and new policies. The first section compares a current policy with 1070 unit sales per month to a new policy with 1120 unit sales. The new policy has a higher cash flow of $11,250 and positive NPV of $433,860.53, so the company should proceed with the new policy. The second section also compares policies and finds the new policy with 2720 unit sales has higher cash flow and positive NPV, so the new policy should be adopted. The third section calculates that a company selling 700 suits per week with an EOQ of 500 suits and safety stock of 100 suits would place around 72.8 orders per year.

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    Capitulo 28: Income Statement Current Policy New Policy

    Uploaded by

    thalibrit
    6 views3 pages
    The document contains 3 sections that analyze income statements and cash flows for current and new policies. The first section compares a current policy with 1070 unit sales per month to a new policy with 1120 unit sales. The new policy has a higher cash flow of $11,250 and positive NPV of $433,860.53, so the company should proceed with the new policy. The second section also compares policies and finds the new policy with 2720 unit sales has higher cash flow and positive NPV, so the new policy should be adopted. The third section calculates that a company selling 700 suits per week with an EOQ of 500 suits and safety stock of 100 suits would place around 72.8 orders per year.

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    The document contains 3 sections that analyze income statements and cash flows for current and new policies. The first section compares a current policy with 1070 unit sales per month to a new policy with 1120 unit sales. The new policy has a higher cash flow of $11,250 and positive NPV of $433,860.53, so the company should proceed with the new policy. The second section also compares policies and finds the new policy with 2720 unit sales has higher cash flow and positive NPV, so the new policy should be adopted. The third section calculates that a company selling 700 suits per week with an EOQ of 500 suits and safety stock of 100 suits would place around 72.8 orders per year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    6 views3 pages

    Capitulo 28: Income Statement Current Policy New Policy

    Uploaded by

    thalibrit
    The document contains 3 sections that analyze income statements and cash flows for current and new policies. The first section compares a current policy with 1070 unit sales per month to a new policy with 1120 unit sales. The new policy has a higher cash flow of $11,250 and positive NPV of $433,860.53, so the company should proceed with the new policy. The second section also compares policies and finds the new policy with 2720 unit sales has higher cash flow and positive NPV, so the new policy should be adopted. The third section calculates that a company selling 700 suits per week with an EOQ of 500 suits and safety stock of 100 suits would place around 72.8 orders per year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    Capitulo 28

    Income Statement Current Policy New Policy


    Price per unit $ 680.00 $ 680.00
    Cost per unit $ 455.00 $ 455.00
    Unit sales per month 1070 1120

    Required Return 0.95%

    Cash flow with old policy $240,750.00


    Cash flow with new policy $252,000.00
    ∆ Cash flow $11,250.00
    PV $1,184,210.53
    Cost of switch $750,350.00
    NPV $433,860.53

    La compañía debe proceder con la nueva política


    Capitulo 28

    Price per unit $ 93.00 $ 97.00


    Cost per unit $ 44.00 $ 44.00
    Unit sales per month 2675 2720

    Required Return 2.40%

    Cash flow with old poli $131,075.00


    Cash flow with new pol $144,160.00
    ∆ Cash flow $13,085.00
    PV $545,208.33
    Cost of switch $250,755.00
    NPV $294,453.33

    La compañía debe proceder con la nueva política


    Capitulo 28

    Saché, Inc., expects to sell 700 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every
    day. The company has an EOQ of 500 suits and a safety stock of 100 suits. Once an order is placed, it takes three days for Saché to get the suits in. How
    many orders does the company place per year? Assume that it is Monday morning before the store opens and a shipment of suits has just arrived.

    Units sold per Week 700 Total Units sold per Year 36,400
    EOQ 500
    Safety Stock 100 Number of Orders per Year 72.8

    Saché volverá a realizar un pedido el miércoles, cuando el inventario alcance las


    400 unidades (300 para los 3 días restantes hasta la llegada y 100 unidades del
    stock de seguridad).

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