cost per order is Rs 30 and the carrying cos: is Rs.50. If the schedule of disce is applicable to the firm, determine the most economical order quantity.
Q: Total costs for Locke & Company at 140,000 units are $289,000, while total fixed costs are $165,000.…
A: Cost incurred to produce and sell a product consist of 2 components, variable cost, and fixed…
Q: Longwe chemical Com. ltd requires 20,000 gallons of material annualy the cost of placing an order is…
A: EOQ is the size of order that reduce the total cost of units. EOQ is determined by using the annual…
Q: ABC Company sells 10,300 units at OMR 10 per unit. Variable costs are OMR 7.5 per unit, and total…
A: Formula: Contribution margin = sales price - variable cost Contribution margin ratio = [ ( Total…
Q: A company manufactures a product that is used in-house and has commercial applications with an…
A: Break Even Point The calculated formula for Break even Point is given below = Fixed Cost / Selling…
Q: Annual demand for an item is 2000 units, order cost is 10 and the annual holding cost is 40% of unit…
A: The details regarding inventory are given. Required Optimum order size.
Q: EasyLang Company provided the following information below Variable production costs…
A: Period costs are costs that are not directly linked with the production process. It include…
Q: A manufacturing company placed an order of 24,000 units semiannually at a price of $20 per unit. Its…
A:
Q: The quarterly demand for an item of raw materials is estimated at 2,000 units at a purchase price of…
A: Optimal Order Quantity:- Optimal Order Quantity is the method of inventory management which…
Q: Waple Corp. has a selling price of $30, varlable costs of $20 per unit, and fixed costs of $20,000.…
A: Solution: Unit contribution margin = Selling price per unit - Variable cost per unit
Q: A Company estimates that its carrying cost is 20% of the purchase price and its ordering cost at $40…
A: Economic order quantity represents quantity that leads to minimum cost of the inventory.
Q: Beatrice Sdn Bhd manufactures and sells two products namely BEAT and RICE. Both of these products…
A: In the given question, we are provided with the data of Beatrice Sdn Bhd manufacturers which sells…
Q: From the following information your Calculate a) P/V ratio b) BEP sales. C) The sales needed for a…
A: Break even point means a point where firm is neither earning profit nor incurring any loss.…
Q: The following information is for the Jeffries Corporation Product A Seling prie per un Vanable cot…
A: Total breakeven point = Total fixed costs / Weighted average contribution margin per unit where,…
Q: 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…
A:
Q: .. Annual Demand is 450 units. The cost to place an order is $80 and holding cost is 25% per year of…
A:
Q: The following information relates to a company . The fixed cost per order is ksh 1,500 The…
A: SOLUTION- ECONOMIC ORDER QUANTITY = 2*A*O / C A= ANNUAL DEMAND O= ORDERING COST C= CARRYING COST…
Q: West Company’s cost structure for a certain items at a level of 20,000 units per month are as…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: if the holding cost of an item is $0.15 per unit per day, the ordering cost is $200 per order, the…
A: Solution- Annual demand= 80 units * 365=29200 Order cost =200 per…
Q: ABC Company sells 10,300 units at OMR 10 per unit. Variable costs are OMR 7.5 per unit, and total…
A: Formula: Total sales revenue = Sales units x sales price per unit
Q: Aris! are The annual need of a manufacturing company is 12,000 units and other information below:…
A: The profitability of the company can be arrived from the income statement prepared by the management…
Q: Calculate the economic order quantity given the following data. Annual demand (D) 5,000 units…
A: Economic order quantity is the optimum inventory level that should be ordered in order to reduce…
Q: Seah Corporation presents the following data: Usage is 400 units per month, cost per order is P20,…
A: Economic order quantity is that quantity which should be ordered in order to minimize ordering costs…
Q: the abc company has BEP units 9000 and the WACM is 120 per unit calculate fixed cost for the ABC.…
A: The BEP is computed by dividing the numerator (fixed cost) by the denominator (contribution margin,…
Q: Gunung Jerai Sdn Bhd have the following information Price per unit: RM 20 - Variable cost per unit:…
A: Given: Particulars Amount in RM Price per unit 20 Variable cost per unit 15 Total sales…
Q: What would be the impact on the targeted overhead rate if the firm decides to boost marketing…
A: Introduction: Absorption costing, sometimes known as full costing, is a method of calculating…
Q: Dambo Limited has prepared the following cost analysis for 6 months of trading. Sales (units) 2 500…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the…
A: SOLUTION- FORMULA, EOQ=2×A×O/C A (ANNUAL DEMAND)=4000 UNITS O (ORDER COST)= RO 60 C (CARRYING COST)=…
Q: Yanks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
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: clarks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in…
A:
Q: Venus Industries consumes 20,000 units p.a. of a particular component. The supplier has offered the…
A: Economic order quantity(EOQ) is the method of ordering the inventory from the suppliers by…
Q: A firm's requirement of materials is 3,000 units (price Rs 20 per unit) for 6 days. The ordering…
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: a) Economic Order Quantity (EOQ) b) Number of orders per annum c) Time between two consecutive…
A: Meaning of EOQ EOQ refers to Economic Order Quantity which defines the optimal quantity where the…
Q: A company has $6.70 per unit in variable costs and $4.10 per unit in fixed costs at a volume of…
A: Variable cost per unit = $ 6.70 Fixed Cost per Unit = $ 4.10 Total Cost per unit =$ 6.70+$ 4.10…
Q: The fixed costs for the current year are Rs. 100,000. The estimated sales for the period are valued…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Compute economic order quantity if annual demand is 5000 units , ordering cost is Rs.30 per order…
A: Economic Order Quantity(EOQ) is amongst the techniques which are used for inventory management. It…
Q: Emeka Company has provided the following information: Sales price per unit Variable cost per unit…
A: The term Contribution is considered under the Cost volume Profit method. Contribution means that the…
Q: if the company desires to earn profit of 25% on selling price, the selling price per unit of product…
A: Prime Cost = Rs.20 Per Unit Factory Overheads = 20% of Prime Cost = Rs.20 x 20% = Rs.4 Works Cost =…
Q: Sunn Company manufactures asingle product that sels for $130 per unt and whose variable costs are…
A: Formula: Contribution margin per unit = Selling price per unit -Variable cost per unit
Q: Choose the correct letter of answer At a monthly volume of P50,000, Yumi Company incurs variable…
A: Variable cost ratio = Total variable cost / Sales Contribution margin ratio = Contribution margin /…
Q: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable…
A: Formula: Total costs = Variable cost + Fixed costs
Q: The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: II. A firm's requirement of materials is 3000 units (Price Rs 20 per unit) for 6 days. The ordering…
A: Meaning of EOQ EOQ is known as Economic Order Quantity. It minimizes the total handling and ordering…
Q: pany is y=48x+1,500,000. The total break ev
A: Breakeven point is the point where the contribution and fixed cost are equal. There is no profit or…
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…
Step by step
Solved in 2 steps
- Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?The quarterly demand for an item of raw materials is estimated at 2,000 units at a purchase price of GH¢180 per unit. It is estimated that the cost per order will be GH¢270 and the cost of holding a unit of material in inventory will be GH¢24.Required:i. Compute the optimal order quantity, and total minimum costs.ii. Suppose a supplier offers 5% quantity discount for purchase of 8,000 units, should the offer be accepted
- The demand for products is 10,000 units. The ordering cost is 40 OMR per order and the holding cost is 10 riyals per unit per annual. The EOQ will be a. 282.84 b. 335.41 c. 379.47 d. 296.641. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 unitsCost of placing one Order: RO 60Carrying cost per unit: RO 22. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units.4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 unitsper month. The valve cost of…The Dermaniaga Company has the following information available: Table 3: Total Monthly Sales Month Sales (RM)June 68,000July 72,000August 74,000September 76,000October 78,000 Additional information: Sales price per unit is RM200 and the finished goods inventory level is 25% of the next month's unit sales. 5 kilograms of materials are required for each unit produced and the cost is RM50/kg. Inventory levels for materials equal 40% of the needs for the next month. Desired ending inventory for September is 157 kilograms of materials. Beginning inventory for July was 138 kilograms of materials. Each unit requires 0.8 hours of direct labor and the average wage rate is RM12 per hour. Required: 1. Analyze a production budget for July, August, September and the quarter in total. 2. Analyze a direct materials purchases budget in kilograms and Ringgit Malaysia for July, August, September and in total for the quarter. 3. Construct a…
- If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time?Electric spark Co., uses 60,000 of component Zima. The cost of placing an order is estimated at $17.28 per order. The annual holding cost is 20% of the purchase price of $20 per unit. The following information is provided to you by the management accountant to use in your analysis: The Normal usage 200 units per day Maximum usage 280 units per day Minimum usage 120 units per day Reorder period 20 to 30 days Required: 1. Determine the EOQ using the equation method 2. Calculate the total cost of inventory per year, in case the company decided to use the EOQ. 3. Electric spark has been offered a 2 per cent discount on the cost if it places orders in quantities of 20,000. Discuss whether the company should accept the discount and place larger orders .The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per unit is RO 1.50 . The fixed order cost is RO 25 per order . The production planning is 365 - day year . a . What is the Economic Order Quantity ( EOQ ) ? Interpret . b . Calculate and interpret the optimal number of orders to be placed. c. If it takes five days to receive an order from suppliers, at what inventory level should ABC Company place another order? Interpret .
- 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following: Annual consumption: 6000 units ; Carrying cost per unit: RO 2 Cost of placing one Order: RO 60 2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units. 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve…Venus Industries consumes 20,000 units p.a. of a particular component. The supplier has offered the following pricing based on order size: Order Quantity (no of units per order) Cost per unit (Rs) 500 - 999 148 1,000 – 1,999 146 2,000 – 4,999 143 5,000 or More 142 For each order, the freight + delivery cost incurred is Rs 3,500, and administrative + documentation cost is Rs 500. Venus has estimated the carrying cost of inventory at Rs 50 per unit per annum. What is the best option for Venus to minimize its total cost?A component used in a manufacturing facility is ordered from an outside supplier. Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint: Express h as the holding cost per thousand units.)a. What ordering policy is recommended by the Silver–Meal heuristic?b. What ordering policy is recommended by the part period balancing heuristic?c. What ordering policy is recommended by the least unit cost heuristic?d. Which method resulted in the lowest-cost policy for this problem?
