A manufacturing company orders 24,000 units of concrete blocks semi-annually at a price of Php20.00 per unit. Its carrying cost per year is 15% of the price of concrete block and the order cost is Php12.00 per order per year. What is the optimum order quantity? and how many orders should be made each year?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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