Let’s continue with the manufacturer example and calculate the reorder point. Let’s say you sold 40 units of an item in March, 60 in April, and 46 in May. The order for the next batch of perfume should be placed when there are 2400 bottles left in your inventory. A reorder point (ROP) is a...
Tennessee and Texas, however, are docked slightly because they do not recognize LLCs or S corporations, and Nevada’s payroll tax keeps the state from achieving a perfect store. New Hampshire only taxes interest and dividend income, while Washington only taxes capital gains income. Of the other 43 states, Arizona, Idaho, Illinois, Maine, Michigan, Missouri, Montana,...
Failing to account for depreciation can be a costly mistake for businesses. Without properly accounting for the cost of assets, companies can underestimate their profits and be subject to various taxes and penalties. Businesses also create accounting depreciation schedules with tax benefits in mind because depreciation on assets is deductible as a business expense in...
The coefficient of determination cannot be more than one because the formula always results in a number between 0.0 and 1.0. Once you have the coefficient of determination, you use it to evaluate how closely the price movements of the asset you’re evaluating correspond to the price movements of an index or benchmark. In the...
If they send nine to sixteen students, the fixed cost would be \(\$400\) because they will need two vans. We would consider the relevant range to be between one and eight passengers, and the fixed cost in this range would be \(\$200\). If they exceed the initial relevant range, the fixed costs would increase to...
