Two components A and B are used as follows:Normal usage50 Units per week eachMinimum usage25Maximum usage75Re-order quantityА- 300 Units..B - 500 UnitsRe-order periodА - 4 to 6 weeks.B- 2 to 4 weeksCalculate for each component:(a) Re-Order level.(b) Minimum level.(c) Maximum level.

Introduction From the information given in the problem we have to calculate Re order level, Minimum…

Two components A and B are used as follows: Normal usage 50 Units per week each Minimum usage 25 Maximum usage 75 .. Re-order quantity A - 300 Units .. B - 500 Units Re-order period A - 4 to 6 weeks. B- 2 to 4 weeks Calculate for each component: (a) Re-Order level. (b) Minimum level. (c) Maximum level.

Two components A and B are used as follows: Normal usage 50 Units per week each Minimum usage 25 Maximum usage 75 .. Re-order quantity A - 300 Units .. B - 500 Units Re-order period A - 4 to 6 weeks. B- 2 to 4 weeks Calculate for each component: (a) Re-Order level. (b) Minimum level. (c) Maximum level.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 25E: Jasmine Companys expected sales were 2,000 units at 100 per unit. During 20x1, it had actual sales...

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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?
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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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