$360 per order $15 per case $560 per rush order $50 per unit Order taking Product handling Rush-order processing Exchange and repair costs Information about Mississippi's five biggest customers follows: A B D Number of units purchased 4,400 8,100 5,400 1,800 10% 1,200 Discounts given 10% 10% 10% on half the units Number of orders 8 16 50 20 18 Number of cases 810 540 180 120 440 Number of rush orders 2 8 Number of units exchanged/repaired 200 18 70 13 All customers except E ordered units in the same order size. Customer E's order quantity varied, so E got a discount part of the time but not all the time. Calculate the customer-level operating income for these five customers. Use the format in Exhibit 14-3. Prepare a customer-profitability analysis by ranking the customers from most to least profitable, as in Exhibit 14-4. Required 1. 2. Discuss the results of your customer-profitability analysis. Does Mississippi have unprofitable customers? Is there anything Mississippi should do differently with its five customers?

$360 per order $15 per case $560 per rush order $50 per unit Order taking Product handling Rush-order processing Exchange and repair costs Information about Mississippi's five biggest customers follows: A B D Number of units purchased 4,400 8,100 5,400 1,800 10% 1,200 Discounts given 10% 10% 10% on half the units Number of orders 8 16 50 20 18 Number of cases 810 540 180 120 440 Number of rush orders 2 8 Number of units exchanged/repaired 200 18 70 13 All customers except E ordered units in the same order size. Customer E's order quantity varied, so E got a discount part of the time but not all the time. Calculate the customer-level operating income for these five customers. Use the format in Exhibit 14-3. Prepare a customer-profitability analysis by ranking the customers from most to least profitable, as in Exhibit 14-4. Required 1. 2. Discuss the results of your customer-profitability analysis. Does Mississippi have unprofitable customers? Is there anything Mississippi should do differently with its five customers?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 15PROB

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16. A company orders 6,225 units per order. Each unit costs £8 to purchase and the cost of holding one unit for one year is 5% of the purchase price. The cost of placing each order is £240 and annual demand is 30,000 units. The economic order quantity (EOQ) is? a) 6,000 units b) 4,360 units c) 5,450 units d) 8,486 units
8) The total purchase related cost is RO 30,000. The number of purchase orders placed is 60. The Activity cost driver rate is: a. RO 300 per order b. RO 180 per order c. RO 500 per order d. RO 450 per order
2. MGS a manufacturing company placed an order of 24,000 units semiannually at a price of 20 per unit. Its carrying cost is 15% and the order cost is 12 per order. Compute the following:a) What is the most economical order quantity?b) How many orders need to be placed?
18.This is Cost Accounting. Explain briefly and answer. The following information applies to PANCIT CANTON CO., which supplies microscopes to laboratories throughout the country. PCC purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation. Annual demand (weekly demand=1/52 of annual demand) 20,800 units Orders per year 20 Lead time in days 15 days Cost of placing an order P100 What is the reorder point? Group of answer choices 875 units 857 units 1560 units 2080 units 940 units
Sales (17,500 units) $1,750,000 Production costs (23,000 units): Direct materials $851,000 Direct labor 409,400 Variable factory overhead 204,700 Fixed factory overhead 135,700 1,600,800 Selling and administrative expenses: Variable selling and administrative expenses $248,100 Fixed selling and administrative expenses 96,000 344,100 If required, round interim per-unit calculations to the nearest cent. *** I only need assistance with the ones that are blank. Could you also leave the steps on how to solve it, please? a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales $1750000 Cost of goods sold Gross profit $ Selling and administrative expenses 344100 Income from operations $ b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc.…
5. Calculate the direct material from the following information: Direct expenses RO 90,000, Direct labor RO 20,000, manufacturing overheads RO 30,000 and prime cost RO 170,000. a.RO 21,000 b.RO18,000 c.RO 60,000 d.RO 20,000 6. Which of the following are used for calculating economic order frequency? i. Total annual consumption ii. No of order per year iii. Buying cost per order iv. 365 days a.i and ii b.ii and iv c.iii and iv d.i and iv
A company requires 50 items are required every day for a machine. OMR50 per order incurred for placing an order. The inventory carrying cost per item amounts to OMR0.200 per day. The reorder period is 32 days. Compute reorder level a 1.800 items b. 1.200 items 1.400 items d 1.600 items
Case 2Al Ahlia detergent company purchased 4500 units of raw material for annual usage. Thepurchase price per unit RO 100 and annual carrying cost is 15%. The cost of placing an order isRO. 1200. Calculate a. Economic Order Quantityb. No of orders per yearc. Economic Order Frequency
Example 1Assume that Grace Company presently produces and sells 20,000 units of product A which represents only 80% of its normal capacity of 25,000 units. Its regular selling price is P50 per unit and its manufacturing, selling and administrative costs are as follows:Materials P10Labor 12Variable OH 8Fixed OH 60,000Variable selling and administrative 7Fixed selling and administrative 40,000 Grace Company received an order from a provincial distributor for 3,000 units. The customer asks for a special discount of 30%. It is expected that the company will incur no additional selling and administrative costs. Should Grace company accept the special order?
Annual production of Product X is 400,000 annually. Each unit of Product X requires 2.5 units of material J. Product X is sold for 500 per unit and its total manufacturing cost is 300. Material J is purchased at 60 per unit. Carrying cost per unit of material J is 1 per unit while the ordering cost is 500 per order. How any units of material j shall the company order each time to minimize total relevant cost of inventories? a. 31,623 b. 20,000 c. 30,263 d. 26,336 e. None of these
N1. Account Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. How many units must be sold each month to earn a monthly operating income of $8,000? (Round your final answer up to the nearest whole number.) Multiple Choice 971 units 1,442 units 353 units 122,500 units
Economic Order Quantity Ottis, Inc., uses 585,225 plastic housing units each year in its production of paper shredders. The cost of placing an order is $42. The cost of holding one unit of inventory for one year is $21. Currently, Ottis places 153 orders of 3,825 plastic housing units per year. Required: 1. Compute the economic order quantity. fill in the blank 1 units 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost $fill in the blank 2 Carrying cost fill in the blank 3 Total cost $fill in the blank 4 3. How much money does using the EOQ policy save the company over the policy of purchasing 3,825 plastic housing units per order? Round your answer to the nearest dollar $fill in the blank 5