A firm uses 2,400 units of a product per year on a continuous basis. The product carrying costs are 60 per year and ordering costs are 252.05 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. (a) Calculate the economic order quantity. (b) Calculate the total cost per year to order and carry this item (c) If it increases its order quantity by 58 units it will get a discount.   i). Calculate the total cost at new level ii). How much is the discount that the supplier will offer  to result in a net benefit to the company

Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…

A: EOQ = √ 2 X Annual Demand X Odering cost / Holding cost EOQ = √ 2 X 40,000 X 10 / 30 X 15% EOQ = √…

Q: A moped manufacturing company needs 100,000 units of moped tires for its production per year.The…

A: Economic order quantity was an inventory management costing principle used to find out required…

Q: Nielsen Associates provides marketing services for a number of small manufacturing firms. Nielsen…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 uni per…

A: Solution 1-    EOQ =2×A×O/C A= ANNUAL CONSUMPTION O= ORDERING COST C=CARRYING COST/STORAGE COST…

Q: The production department for a company requires 3,600 Kg of raw material for manufacturing…

A: Given that : Raw material Required = 3600 Kg per year to manufacture particular item Cost of placing…

Q: [The following information applies to the questions displayed below.] Iguana, Inc., manufactures…

A: The question is based on the concept of Cost Accounting.

Q: Rocco's manufactures 1,600 units of product per year. The cost of materials for these products are…

A: Economic ordering quantity is the optimum quantity to be ordered to minimize the cost of inventory.…

Q: Hyzel Manufacturing Company has an annual average requirement of 320,000 units. It has been…

A: Hi student Since there are multiple subparts, we will answer only first three subparts

Q: reedom plc uses 180,000 units of material each year. The cost of placing an order is £200 and the…

A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…

Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…

A: Economic order quantity indicates the level of units that should be ordered to get the least cost of…

Q: Flamingo purchases 8,000 litres of ink each year for its production processes. The unit cost per…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: A manufacturing company placed an order of 24,000 units semiannually at a price of $20 per unit. Its…

A:

Q: A company requires 8,000 units of material A per month. The cost per order is $950 and the holding…

A: Total cost of buying the material includes holding cost + ordering cost

Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: IT Company produces and sell boxes of sign pens for P1,000 per box. Direct materials are P400 per…

A: Fixed overhead cost per unit = Total fixed overhead / Production  = P12,500,000 per year / 100,000 =…

Q: Suppose White Company manufactures chairs. One model is the executive chair that sells for $220.…

A: Projected sales revenue = Budgeted sales in units* Unit selling price

Q: Ndapandula Investment CC sells about 12 000 bags of poulty grain per year. The Holding costs are N$…

A: Company is regularly working to manage the inventory. The inventory is managed in order to…

Q: The Best Furniture company produces a specialty wood furniture product, and has the following…

A: The details are provided of a company produces specially wood furniture product   Required  What is…

Q: b. XYZ company produces staplers and other items. The production cost per unit is $8 and the cost of…

A: Production time allocated annually to the product =Annual demand/Daily production

Q: A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and…

A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…

Q: An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are$80 per order, and…

A: Economic Order Quantity:- EOQ is the minimum quantity that one should order to minimize the ordering…

Q: XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and…

A: Annual demand: 325 kgs. x 12 months = 3,900 kgs.  Cost per unit: OMR 2.00 Ordering cost per order:…

Q: Milden Company is a merchandiser that plans to sell 37,000 units during the next quarter at a…

A: Net operating income is the amount of income earned by the entity after deducting all the outlays…

Q: TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear…

A:

Q: ‏The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per…

A: Economic Order Quantity: The economic order quantity is the ordering level at which the storage cost…

Q: Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Nielsen Associates provides marketing services for a number of small manufacturing firms. Nielsen…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Kren processing company uses 2,400 units of a product per year on a continuous basis. The product…

A: At Economic Order Quantity the total cost is minimum. Formula: EOQ=2×Annual demand× cost per…

Q: WZY processing company uses 2,400 units of a product per year on a continuous basis. The product…

A: EOQ= 2×A×OCWhere,A=Annual demandO=Ordering costC= Carrying cost

Q: Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking…

A: Economic Order Quantity (EOQ): Economic order quantity is the quantity of order that is purchased…

Q: Phyllis Limited produces a product called SOMUAH. The manufacture of this product requires raw…

A: Phyllis Limited produces a product called SOMUAH. The manufacture of this product requires raw…

Q: The john equipment company estimates its carrying cost at 15% and its ordering cost at $90 per…

A: We have the following information: Carrying Cost: 15% Ordering Cost: $90 per order Annual…

Q: The annual demand for a certain product is 11,340 units. The company informs you that every time an…

A: The profit of the company will be the main aim of running the operations of the company. The income…

Q: Bell Computers purchases integrated chips at ​$350 per chip. The holding cost is ​$36 per unit per​…

A:

Q: You are required to prepare forecasted Income statement for 19B, if the prime cost is 60% of cost of…

A: Current Year Income Statement and Forecasted Income Statement is Given Below,

Q: A company uses components at the rate of 15,000 units per year, which are bought in at a cost of…

A: Holding cost:-This cost incurred in carrying the inventory in-store, therefore it is also known as…

Q: WZY processing company uses 2,400 units of a product per year on a continuous basis. The product…

A: Solution A- EOQ= 2×A×O/C A= Annual demand O= ordering cost C= Carrying cost   EOQ=2×2400×252.05/60…

Q: Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is…

A: Per unit carrying cost=20%×$50=$10

Q: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much…

A: EOQ, Economic Order Quantity can be defined as the position of ordering the goods according to the…

Q: Sawtooth Industries uses an economic order quantity (EOQ) model to manage its inventory investment.…

A: Economic order quantity represents the number of units that should be ordered by the entity in each…

Q: ABC company uses 8,000 pens every year. For each pen, cach order cost is $30 and the annual holding…

A: The question is based on the concept of Economic Order Quantity. Economic order quantity or Optimal…

Q: A company has annual demand for its product of 800,000 units. Each unit costs $10. Ordering costs…

A: The optimum order level is Economic order quantity or EOQ if no discount is given. So, it is…

Q: requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15%…

A: Economic order quantity is most optimal level of quantity that is required such that it minimises…

Q: TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Demand for a product is 12,000 units per year. Every time an order is made, the company must pay…

A: Cost of inventory is the total cost of ordering and carrying the inventory.

Q: A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and…

A: EOQ = 2 × D × SH where D= Annual Demand            S= Cost of reordering (per unit)            H=…

Q: Faber Manufacturing, Inc., of St. Paul, Minnesota has an economic order quantity considering…

A: The maximum level of inventory is the maximum quantity of material which have to keep in store. We…

Q: Farrow Co. expects to sell 500,000 units of its product in the next period with the following…

A: Lets understand the basics. When special order situation arise then management choose to accept…