Question 4NUR Berhad is adiscussing with the marketing manager, the productionmanager planning to focus on producing a product namedAFI. The marketing manager is observing on two states,Selangor and Pahang, the sales at both states is expectedto be RM500,000 an RM810,000 respectively. Informationrelated to the cost per unit of the production for both statesare as follows:company producing tables. AfterSELANGOR (RM) PAHANG (RM)Selling price100135Direct material4045Direct labour1015Overhead203050% of the overhead in SELANGOR and PAHANG arefixed.Required:(Each question is to be treated independently)c. Marketing manager suggested the company should sellAFI in both states as he is convinced the market wouldbe good. However, the direct material cost will increaseby 10%.Advice the management on how many additional unitsto be sold for both states, assuming other informationremains unchanged and NUR Berhad would like tomaintain its annual profit. (Calculate to the nearestunit).

Given: SELANGOR (RM) PAHANG(RM) selling price 100 135 Direct meterial 40 45 Direct labour 10…

Answered: Be scussing anager SC IS

Business

Accounting

Be scussing anager SC IS

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter14: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 2PA: Strategic initiatives and CSR Get Hitched Inc. is a production company that is in the process of...

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Question 1: Pretexpo is a Turkish manufacturing company and produces fabrics for the 2021 Textiles Trade show which will be held in Belgium. Fabrics are demanded for the show as 100 units per day. Fixed cost for production of fabric is $60 and total material and labor cost per unit fabric is $20, storage and handling costs are $15 per unit per year. Suppose there are 300 working days one year. a) Determine the optimal order quantity. b) What is the time between placement of orders? c) What is the average annual cost of holding and setup due to this product? d) If replenishment lead time is three months, determine the reorder level based on the on-hand inventory. e) If replenishment lead time is four days, determine the reorder level based on the on-hand inventory. f) Draw a graph of the amount of inventory over time. Indicate R value and show order placement and order arrival times. Using your graph determine the average amount of inventory. Determine the optimal order quantity.
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