Mutiara Foundry Sdn. Bhd., a regular supplier for item KK, has proposed an offer price to the company. The price list is shown in Table Q1(b). The ordering cost is $250/order, and the holding cost is $5/unit/year. Evaluate the offer and finalize the optimum order quantity that would minimize the inventory cost. Table Q1(b) Quantity 1- 599 Unit price ($) 100 600 - 999 90 1000 - 1999 75
Q: hofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20…
A: Solution; Break Even Point in Units = Fixed Costs / Contribution Margin per Unit Break Even Pont in…
Q: repare and present a computation which illustrates what price should be selected in order to…
A: There are two options for the company:- Option 1: Produce 7000 boxes using company's own capacity at…
Q: The following problem is designed to be solved by spreadsheet. Suppose the supplier of keyboards is…
A:
Q: n the Sam’s Bookstore problem, the quantity discountstructure is such that all the units ordered…
A: Inputting all the information given in the sam's example:
Q: Use this information for Stryker Industries to answer the question that follow. Stryker Industries…
A: Income from the offer acceptance = Units * ( Sale Price - Variable Manufacturing Cost)
Q: Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.
A: Variable costs are those costs which change with the level of production or activity. The variable…
Q: Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an…
A: The ideal order ize for a company is called economic order quantity. It minimizes order cost and…
Q: 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: NUBD Co. currently sells 1,000 units of product M for P2 each. Variable costs are P1.50. A discount…
A: Contribution margin per unit on Normal sales = sales - variable costs per unit = P2 - 1.50 = P0.50…
Q: The Stackpole Company retails two products, a standard and deluxe version of a luggage carrier.The…
A: CVP, Cost Volume and Profit analysis is useful to understand how changes in costs and volume affects…
Q: M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700…
A: Economic order quantity:- It refers to the fixed order quantity that minimizes the total ordering…
Q: Use this information for Stryker Industries to answer the question that follow. Stryker Industries…
A: Differential cost is the cost which states the difference among the two alternative decisions cost…
Q: Compute the EOQ given the following information. The annual consumption is 6000 units, ordering cost…
A: Given, Ordering Cost = RO 60 per order Carrying Cost = 20% of price Annual demand = 6,000 unit
Q: 0 per unit. What is the optimum order size? A. 147 units
A: The right answer is B. 207 units
Q: In 400-500 words please answer the following: Management decides to increase the selling price from…
A: 1. Explain the cost-volume relationships that should Paulsen take into consideration for the…
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: Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model.…
A: SOlUTION 1-NO OF ORDERS IN YEAR = ANNUAL DEMAND / EOQ. 2- AVERAGE INVENTORY LEVEL = EOQ / 2 3-…
Q: When making the determination of whether or not a selling price should be increased there are many…
A: For a cost-volume profit analysis, we need to first determine the unit selling price and variable…
Q: For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200…
A: Economic Order Quantity refers to the number of units the company should add to the inventory and…
Q: A company uses activity-based pricing. The pricing structure is to charge customers the direct cost…
A: Given the following information: Markup on direct cost: 30% The service costs are $8.00 per order,…
Q: What is the optimal order quantity?
A: Economic order quantity is the optimal order quantity that a business should order to save ordering…
Q: Given the price and cost data shown in the accompanying table for each of the three firms, F, G,…
A: contribution per unit = sell price per unit - variable cost per unit
Q: Effect of management evaluation criteria on EOQ model. Rugged Outtters purchases one model of…
A: Since there are multiple sub-parts as per guidelines only the first three sub-parts will be…
Q: The following information relates to the operations of a company; cost per unit from supplier-…
A: Solution= Selling price= 80/1-0.20 =80/0.80 = GHC100…
Q: The standard price for one dozen pierogis has been $5.99 per dozen. Depending upon the ingredients,…
A: Given, The standard price for one dozen pierogis = $5.99 per dozen Competitor's price range from =…
Q: Hardley sells mamburgers. He faces fixed costs of $18,000 per month and variable production and…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Muscat Gases ,Sultanate of Oman. Market research information suggest that the product should sell at…
A: Mark Up: It is the difference between a product's selling price and cost and is expressed as a…
Q: The ABC co.is planning to stock new product. The ABC co.has developed the following information:…
A: a) Determine the optimal number of units per order? X0 = √2CB/zp = √2*5400*55/365*0.28 =…
Q: Company D is planning to perform an ABC analysis for its products. An information table is given…
A: ABC analysis is an inventory control method which include categorizing of items used in production…
Q: Massa Machine Tools expects Total sales of 14,000. The price per unit is $6. The firm estimates an…
A: Optimum order size can be calculated with the economic order quantity technique. Eoq is considered…
Q: lpha Company is approached by a customer to provide a one-time only special order for a product…
A: Contribution to fixed cost is the excess of contribution earned over the fixed cost. For this…
Q: Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the…
A: The total cost includes both variable cost per unit and fixed cost per unit. The total cost will be…
Q: With an annual demand for cups of 2.3 million, an annual carrying cost per box of cups of P 95, and…
A: Optimal order quantity refers to the number of units to be ordered at one go in order to get the…
Q: Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The…
A: Inventory Control - The aim of inventory control is to achieve maximum efficiency in the management…
Q: Salalah Company has the following information: Total Sales (Amount) = OMR 80000 Selling Price per…
A: The question is multiple choice question Required Choose the Correct Option
Q: Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 50o units. The…
A: Question is based on the concept of cost accounting
Q: 1. When prices are rising (inflation), which costing method would produce the highest value for…
A: Last-in, first-out (LIFO) is the inventory valuation method in which the inventory which is…
Q: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per…
A: EOQ=(2*400*12*119/35)^0.5 =180.67 EOQ=181
Q: Swiss Watches Inc approaches Taiwan Watches Inc. with an inquiry about a special order. Taiwan…
A: In case of special order, if there is excess capacity with the firm to fulfill such special order,…
Q: 4. Hasya Enterprise sells notebooks and the annual demand for the notebooks is 1800. The cost of the…
A: Calculation of total cost in case the offer is accepted Ordering cost = RM 44 Unit Cost = 1200 -…
Q: 15. MM Co. expects total sales of P10,000. The price per unit is P5. The firm estimates an ordering…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: The following information relates to the operations of a company; cost per unit from supplier-…
A: The breakeven number of units, is the quantity of products or services that a company needs to sell…
Q: Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…
A: Hi student: Since there are multiple questions, we will answer only first question. If you want…
Q: When making the determination of whether or not a selling price should be increased there are many…
A: The enterprise has increased the selling price and wants to analyze the effects of this decision.
Q: Suppose the relevant carrying cost per unit per year was $20 and the relevant ordering cost per…
A: Economic Order Quantity or EOQ in inventory management, economic order quantity is the order…
Q: HH trading company sells school bags and the annual demand is 2800 bags. It costs the company RM 33…
A: Optimal order quantity is also written as EOQ or economic order quantity. It is the level of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.Sienna Company uses the FIFO cost flow assumption. Sierra has inventory with a selling price of 100, packaging costs of 5, and transportation costs of 10. Siennas normal profit margin is 20. However, due to limited supply of the product from the manufacturer, it would cost Sienna 80 to replace the inventory. What amount should be used as the market value? a. 65 b. 80 c. 85 d. 100Stiles Corporation uses the LIFO cost flow assumption and is in the process of applying the LCM rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Product A Product B Historical cost $80 $96 Replacement cost 70 98 Estimated cost of disposal 32 30 Estimated selling price 150 120 Required: 1. What is the correct inventory value for each product? Product A $fill in the blank 1 per unit Product B $fill in the blank 2 per unit 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations? For Product A, For Product B,
- Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Product A Product B Historical cost $80 $96 Replacement cost 71 98 Estimated cost of disposal 32 28 Estimated selling price 150 120 Required: What is the correct inventory value for each product? Product A $ per unit Product B $ per unitMetlock Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 2,000 $15 2/4 Purchase 3,000 23 2/20 Sale 3,500 38 4/2 Purchase 4,000 29 11/4 Sale 3,200 42 Compute cost of goods sold, assuming Metlock uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.) Cost of goods sold (a) Periodic system, FIFO cost flow $ (b) Perpetual system, FIFO cost flow $ (c) Periodic system, LIFO cost flow $ (d) Perpetual system, LIFO cost flow $ (e) Periodic system, weighted-average cost flow $ (f) Perpetual system, moving-average cost flow $. A retailer is considering the purchase of 100 units of a specific item from either of two suppliers. Their offers are as follows: A: $780 a unit, total of $78,000, 1/10, n/30, plus freight of $1,500. B: $800 a unit, total of $80,000, 2/10, n/30, no charge for freight. Which of the two offers, A or B, yields the lower price? Answer: ______________________________________________________________________ Explain your answer: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
- Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Wyteboard's minimum costs of ordering and holding inventory? SHOW THE ANSWER IN A GOOD ACCOUNTING FORMAssume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Wyteboard's minimum costs of ordering and holding inventory?Please provide a solutionIn 400-500 words please answer the following: Management decides to increase the selling price from $50 to $55 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. What cost-volume relationships should Paulsen take into consideration for the original price and the proposed new selling price? Discuss the non-monetary factors that should be taken into consideration before raising a selling price.
- A firm buys and sell two models, P and Q. The following unit’s cost are available (all figures are in GHc and all the cost are borne by the firm). P Q Purchase 100 200 Delivery cost from supplier 20 30 Delivery costs to customer 22 40 Packaging costs 15 18 Selling price 150 300 Required: calculate the figure to be included in closing inventory for a unit each model, according o IAS 2 Inventories.Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of $300, a normal profit margin of $35, and a current replacement cost of $250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Black’s ending inventory.Dhofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20 Variable cost per unit OMR 12, What will be the correct amount of Profit when 2500 Units have been sold? Select one: a. OMR 12000 b. None of the options c. OMR 10000 d. OMR 20000 2) Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and 9000 in 2020, and if accounts payables balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash payments for COGS (cash inputs)? Sales 75,000 -COGS 55,000 Gross Profit 20,000 -Operating Expenses 8,000 Operating Profit 12,000 -Interest Expense 2,000 Profit before Tax 10,000 -Tax 3,000 Net Profit 7,000 Select one: a. 54000 b. 56000 c. 59000 d. 63000