Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July August September October November December 8,020 10,990 Units to be purchased 8,460 9,010 6,480 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September
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- Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $20.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 17,000 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,420 August 11,390 September 8,860 October 9,410 November 6,880 December 5,560 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September.Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,020 August 10,990 September 8,460 October 9,010 November 6,480 December 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September Units to be purchased ?? ?? ?? Estimated cost $ ?? $ ?? $ ??Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer. Green Trees plans on ordering t-shirts several times over the next year. The firm receives 2,500 t-shirts each time it orders. The carrying cost is $0.10 per shirt per year. The order cost is $500 per order. What is the annual ordering cost of the t-shirt inventory (rounded to the nearest dollar)?
- Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $18.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,800 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July August September October November December 8,220 11,190 8,660 9,210 6,680 5,360 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. Units to be purchased Estimated cost DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August SeptemberCassorla’s Clothes sells a large number of white dress shirts. The shirts, which bear the store label, are shipped from a manufacturer in New York City. Hy Cassorla, the proprietor, says, “I want to be sure that I never run out of dress shirts. I always try to keep at least a two months’ supply in stock. When my inventory drops below that level, I order another two-month supply. I’ve been using that method for 20 years, andit works.”The shirts cost $6 each and sell for $15 each. The cost of processing an order and receiving new goods amounts to $80, and it takes three weeks to receive a shipment. Monthly demand is approximately normally distributed with mean 120 and standard deviation 32. Assume a 20 percent annual interest rate for computing the holding cost.a. What value of Q and R is Hy Cassorla using to control the inventory of white dress shirts?b. What fill rate (Type 2 service level) is being achieved with the current policy?c. Based on a 99 percent fill rate criterion,…The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $18.00 each with a minimum order of 174 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 174. Since Hooper’s plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $36.00 each. Hooper would pay the students a commission of $5.00 for each shirt sold. Required: 1.What level of unit sales and dollar sales is needed to attain a target profit of $9,048? 2.…
- The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $24.00 each with a minimum order of 186 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 186. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $48.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $13,392?…The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $19.00 each with a minimum order of 218 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 218. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $38.00 each. Hooper would pay the students a commission of $6.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $11,336?…The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $17.00 each with a minimum order of 152 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 152. Since Hooper’s plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $34.00 each. Hooper would pay the students a commission of $4.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $7,904?…
- The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $24.00 each with a minimum order of 190 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 190. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $48.00 each. Hooper would pay the students a commission of $5.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $14,440?…The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $24.00 each with a minimum order of 224 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 224. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $48.00 each. Hooper would pay the students a commission of $7.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $15,232?…The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $22.00 each with a minimum order of 196 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 196. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $44.00 each. Hooper would pay the students a commission of $8.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $10,976?…