2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. Thedemand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25order.3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO4 per unit for a year and EOQ is 60 units.4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest andstore keeping charges are 20% of the value and the cost of placing of an order and receiving the goodsis RO 60, how much material should be ordered at one time?5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 unitsper month. The valve cost of RO 1.50 per unit when bought in large quantities, and the carrying cost isestimated to be 20% of average inventory investment on an annual basis. The cost to place an orderand process the delivery is RO18.It takes 45 days to receive delivery from the date of an order and a safety stock of 3250 vales isdesired.You are required to determine.a. The most economical order quantity and frequency of orders.b. The most economical order quantity if the valves cost is RO 4.50 each instead of RO 1.50 each

2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order.

2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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