Please solve all the questions.. please Kroton Motor Parts Şdn, Bhd. purchased a raw material named Kroton, from an outside supplierat a cost RM960 per dozen. The company uses the economic order quantity (EOQ) model toestablish the re-order quantity for Kroton. The company holds no buffer stock. The managementis always concerned of stock-out costs, that are the costs associated with running out of stock.Monthly usage of the item is 4,000 units, and the following information is available.Clerical, stationery, postage, telephone and transport cost per orderRequired annual return on investment in stocksOther holding costs per unitRM1206% per annumRM3.20Required:a. Calculate the annual demand in units.b. Calculate the annual cost of purchasing for raw material Kroton,c. Calculate the economic order quantity (to the nearest unit) for raw material Kroton.d. Calculate the number of order per year the company will place for Kroton.

EOQ or the economic order quantity helps the company decide the quantity that lowers the overall…

Required: a. Calculate the annual demand in units. b. Calculate the annual cost of purchasing for raw material Kroton. c. Calculate the economic order quantity (to the nearest unit) for raw material Kroton. d. Calculate the number of order per year the company will place for Kroton.

Required: a. Calculate the annual demand in units. b. Calculate the annual cost of purchasing for raw material Kroton. c. Calculate the economic order quantity (to the nearest unit) for raw material Kroton. d. Calculate the number of order per year the company will place for Kroton.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

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