How much is the carrying cost per unit? *
Q: A moped manufacturing company needs 100,000 units of moped tires for its production per year.The…
A: Economic order quantity was an inventory management costing principle used to find out required…
Q: A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is…
A: Price = Total cost + Mark up on cost
Q: Each year you sell 950 units of a product at a price of P899 each. The variable cost per unit is…
A: Economic order quantity is the ideal number for a company, which is needed to be ordered by them to…
Q: A local whole seller for Lipton tea estimates an annual demand of tea at 4200 kgs. It costs RO 10 to…
A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A:
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: Economic order quantity indicates the level of units that should be ordered to get the least cost of…
Q: How much is the annual requirement?
A: Given: Semiannual requirement 39,000 units Unit price of P4 per unit. Carrying cost at 15% of the…
Q: A manufacturing company placed an order of 24,000 units semiannually at a price of $20 per unit. Its…
A:
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: A company requires 8,000 units of material A per month. The cost per order is $950 and the holding…
A: Total cost of buying the material includes holding cost + ordering cost
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: The carrying cost per unit as follows: Carrying cost = 15% of the price Price per unit = $4
Q: Tamarisk Inc is a company that manufactures and sells a single product. Unit sales for each of the…
A: Profitability means revenue minus expenses, whatever is left over is the profit. Businesses can’t…
Q: The weekly requirement of a component is 950 units. The order cost is RM85 per order, the holding…
A: Economic Order Quantity (EOQ) was related with inventory management where it helps to order the…
Q: Lakeland Company produces and purchases 20,000 units each year at a cost of $80 per unit. Lakeland…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: he Xenopeltics Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Economic Order Quantity = (2S0 / C)1/2 where, C = carrying cost per unit = $4 * 0.15 = $0.60 S =…
Q: The Xenopeltics Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Carrying cost = Cost per unit * Carrying cost rate per annum
Q: SaleCo sells 11,000 units resulting in $110,000 of sales revenue, $50,000 of variable costs,…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: A company has estimated its economic order quantity for Part A at 3,000 units for the coming year.…
A: Economic order quantity = 2 * Annual usage * cost per order / Carrying cost per unit
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: Vallie Enterprise sells a product that costs $200 per unit and has a monthly demand of 500 units.…
A: Economic order Quantity: It is the quantity level at which holding costs and ordering costs is…
Q: . Leyla Tas has determined that the annual demand for #6 screws is 100000 screws. Leyla, estimates…
A: Annual Cost = 100,000 Cost per order = 10MU Storage Cost = 1 x 12 x100 = 0.005
Q: Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The…
A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…
Q: pioneer limited purchases a product which has a steady monthly demand of 20000 units. The product…
A: EOQ is the quantity that minimises total holding cost and which order costs.
Q: Blue Corp. shows monthly fixed costs of Php1,797 and per-unit cost of Php9.28. It sells 411 units in…
A: The break even sales units are the sales where business earns no profit no loss.
Q: Bozo Company has total costs of $90,000 when it sells 20,000 units. If total fixed costs are…
A: The total cost of product= $ 90000 Total fixed cost= $ 30000 Total variable cost= Total cost- total…
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: Olive Corporation buys a material for P20 per unit Sixteen thousand parts a year are needed Carrying…
A: Economic order quantity (EOQ) is a method of inventory management for calculation of optimal…
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: pioneer limited purchased a product which has a steady monthly demand of 20 000 units. the product…
A: SOLUTION- FORMULA- ECONOMIC ORDER QUANTITY= 2×A××O/C A= ANNUAL DEMAND…
Q: What is the fixed cost per unit at the break-even point?
A: Information Provided: Production units = 8000 Selling price = 1.50P Fixed costs = 2800P Variable…
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Economic order quantity indicates the total units to be ordered at one time. This EOQ level is…
Q: Luna Sea Sushi, Inc. has total costs of $130,000 when it sells 40,000 units. If total fixed costs…
A: Variable cost per unit can be calculated by dividing total variable cost by total units.
Q: The john equipment company estimates its carrying cost at 15% and its ordering cost at $90 per…
A: We have the following information: Carrying Cost: 15% Ordering Cost: $90 per order Annual…
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: EOQ:- Economic order quantity model is used to calculate the optimal order size to reduce the cost…
Q: Luna Sea Sushi, Inc. has total costs of $90,000 when it sells 40,000 units. If total fixed costs are…
A: Total Cost = $ 90,000 Units Sold = 40, 000 Units Fixed Cost = $ 50,000
Q: The annual demand for a certain product is 11,340 units. The company informs you that every time an…
A: The profit of the company will be the main aim of running the operations of the company. The income…
Q: Pioneer Limited purchases a product which has a steady monthly demand of 20 000 units. The product…
A: Economic Order Quantity = [(2 X Annual Demand X Ordering cost per order/ Carrying cost per unit per…
Q: The demand for products is 10,000 units. The ordering cost is 40 OMR per order and the holding cost…
A: Economic order quantity (EOQ) is an ideal order quantity a firm should buy to reduce stock or…
Q: A company manufacturing electronics equipment purchases transistors at Rs . 41 per unit. The annual…
A: Economic Ordering Quantity: It refers to the size of the order which gives maximum economy in…
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: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Annual Requirement of units = Semi annual requirement x 2 Given that: Semi annual requirement =…
Q: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much…
A: EOQ, Economic Order Quantity can be defined as the position of ordering the goods according to the…
Q: ABC company uses 8,000 pens every year. For each pen, cach order cost is $30 and the annual holding…
A: The question is based on the concept of Economic Order Quantity. Economic order quantity or Optimal…
Q: Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects…
A: Net operating income = Contribution margin - Fixed costs Contribution margin = Net operating income…
Q: requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15%…
A: Economic order quantity is most optimal level of quantity that is required such that it minimises…
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…
The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of P4 per unit. The carrying cost at 15% of the price and its ordering cost at P90 per order. How much is the carrying cost per unit? *
Step by step
Solved in 2 steps
- Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
- Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
- 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?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 annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
- This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total order-filling costs of 900,000. There are two types of customers: those who order 50,000 pound lots (small customers) and those who order 250,000 pound lots (large customers). Each customer category is responsible for buying 1,500,000 pounds. The selling price per pound is 2 per lb for the 50,000 pound lot and 3 per lb for the larger lots, due to differences in the type of chocolate. ABC would likely assign order-filling costs to the customer type as follows: a. 450,000, small; 450,000, large (using pounds as the driver) b. 360,000, small; 540,000, large (using revenue as the driver) c. 750,000, small; 150,000, large (using number of orders as the driver) d. 450,000, small; 450,000, large (using customer type as the driver)Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the carrying cost for one pound of oats is 0.45. Required: 1. Compute the economic order quantity for oats. 2. Compute the carrying and ordering costs for the EOQ.If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000