A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5640 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more ata per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. 21619 O b. 29813 O c. None is correct O d. 25000 e. 23548

A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5640 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more ata per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. 21619 O b. 29813 O c. None is correct O d. 25000 e. 23548

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 31E: Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is...

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Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000
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Chester’s a local butchery expects to sell 419 675 kilograms of meat for the year 2022. Carrying costs are R 16.25 per unit and order costs are R 33.55. The organization works 310 Days per year. Determine the length of the order cycle.