A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5760 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 at a 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. 29813 O b. 24031 None is correct O d. 21619 O e. 23548
A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5760 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 at a 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. 29813 O b. 24031 None is correct O d. 21619 O e. 23548
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13P: Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income...
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Transcribed Image Text:A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5760 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 at a 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.
29813
O b. 24031
Oc.
None is correct
O d. 21619
O e. 23548
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