Groundz coffee shop uses 4 pounds of a specialty tea weekly; each pound costs $16. carrying costs are $1 per pound per week because space is very scarce. it costs the firm $8 to prepare an order. assume groundz is open 52 weeks per year, and closed on mondays.
a. how many pounds should groundz order at a time?
b. what is the total annual cost of managing this item?
c. the lead time for orders to arrive is 1.5 (work) weeks. if the standard deviation of weekly demand is 1.2 pounds, and groundz wishes to achieve at least a 98% customer satisfaction level, what is the reorder point?
d. groundz has been contacted by a new supplier who is offering to sell the same tea for $12 per pound. in return, groundz can place orders only once a month. inventory and ordering costs would remain the same. is it more cost-effective for groundz to switch suppliers? should groundz switch?

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Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.

On january 1, eastern college received $1,350,000 from its students for the spring semester that it recorded in unearned tuition and fees. the term spans four months beginning on january 2 and the college spreads the revenue evenly over the months of the term. assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on february 28?