Wheels and deals limited uses 60000 batteries each year in its production of motorcycles at a cost of $450 per battery. The cost of placing an order is $75.00. The cost of holding one unit of inventory for one year is 0.05% of the unit purchase price. Currently wheels and deals limited places 12 orders of 5000 batteries per year. Compute the cost wheels and deals current inventory policy. Is this the minimum cost? Explain

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A: Economic order quantity was an inventory management costing principle used to find out required…

Q: Martin Company uses 625 units of a part each year. The cost of placing one order is $8; the cost of…

A: EOQ or economic order quantity is the ideal order of quantity purchased a company at a certain rate…

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A:

Q: Auto Zone purchases replacement brake fluid reservoirs directly from the manufacturer. Demand is…

A: A)   EOQ=2Demand Cost × Ordering CostHolding Cost=21,000×$10×$2520%=2$250,00020%       = 447 units…

Q: The TOPSHOP company has a monthly demand for an item of 1,000 units/month. This company operates…

A: Answer 3A For the given quantity discount =12% is applies Actual unit price =$10Discount…

Q: Varto Company has 12,400 units of its sole product in inventory that it produced last year at a cost…

A: It is to be noted that the last of th inventory incurred last year is a sunk cost and not relevant…

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: Schrute Company has 7,200 units of its sole product in inventory that it produced last year at a…

A: Incremental income is defined as the additional revenues from the additional quantity and it is…

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: Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the…

A: Costs are referred to as the expenses which are required to be paid by the business to run the…

Q: Hi Tech Corporation (HTC) expects to order 295,000 memory chips for inventory during the coming…

A: Step 1  Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: A firm uses 2,400 units of a product per year on a continuous basis. The product carrying costs are…

A: Economic Order Quantity (EOQ) was related with inventory management and it helps to order the…

Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Malburn Construction Ltd. Manufactures and distributes window frames. The company uses 600,000 metal…

A: We need to use economic order quantity(EOQ) formula to calculate order size to minimize inventory…

Q: The monthly demand of GHI's sole product is 30,000 cases. Based on data analysis, the carrying cost…

A: Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…

Q: Item X is a standard item stocked in a company's inventory of component parts. Each year the firm,…

A: EOQ = 2SDH

Q: Varto Company has 10,400 units of its sole product in inventory that it produced last year at a cost…

A: This question deals with the concept of sale or further process decision making. In this decision…

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A:

Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…

A: Inventory level at which business should place order is known as reorder point in business.

Q: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories,…

A:

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: The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitan produces…

A: Since we answer up to 3 subparts, we will answer the first three. Please resubmit the question and…

Q: Wheels & Deals Limited uses 60,000 batteries each year in its production of motorcycles at a cost of…

A: Definition: Ordering Cost: The term, Ordering cost refers to the cost incurred for acquiring inputs.…

Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…

A: Level of inventory at which business should place order for the inventory is known as Reorder point.

Q: National Co. uses about 200,000 yards of a particular fabric each year. The fabric costs P25 per…

A: The total annual cost is the cost of all the product cost including fixed and variable both. The…

Q: An automobile parts supplier sell Excel brand batteries to van dealers. The annual demand is…

A: Formula of EOQ is; EOQ=2×Annual demand×Ordering costHolding cost

Q: One of the products that Justine Corporation sells is “Extra Soft” floor mats. Justine’s ordering…

A: Inventory:- Inventory is supervision of non-capitalized assets and stock items. It is physical stock…

Q: Tiger Corporation purchases 1,400,000 units per year of one component. The fixed cost per order is…

A: 1)  Formula:

Q: Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and…

A: Economic Order Quantity or EOQ is the ideal number of units the company should order in order to…

Q: Wheels & Deals Limited uses 60,000 batteries each year in its production of motorcycles at a cost of…

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and…

A: a. Following are the calculation of total number of orders:

Q: The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual…

A: Here, Economic Order Quantity when purchase Price is not constant. When Purchase Price is not…

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: XYZ Inc. needs 400 kgs of a material per month. It costs OMR 100 to make and receive an orderand it…

A: Correct option is as fallows  Re order point = average daily sales × lead time + safety stock

Q: Bell Computers purchases integrated chips at ​$350 per chip. The holding cost is ​$36 per unit per​…

A:

Q: e Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink…

A: Given,  Annual Requirement (A) is 1,440,000 Per unit Rate (C) is P2 Ordering Cost (O) is 100 per…

Q: WZY processing company uses 2,400 units of a product per year on a continuous basis. The product…

A: Solution A- EOQ= 2×A×O/C A= Annual demand O= ordering cost C= Carrying cost   EOQ=2×2400×252.05/60…

Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…

A: Given: Optimal order quantity = 2,500 units Safety stock = 500 units Price per unit = P4 Annual…

Q: A supplier sells Hipoint-brand pens to stationary shops. The annual demand is approximately 24,000…

A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Q: How much is the carrying cost per unit? *

A: Carrying cost is such cost which a company bears as a storage cost per unit.

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: Sawtooth Industries uses an economic order quantity (EOQ) model to manage its inventory investment.…

A: Economic order quantity represents the number of units that should be ordered by the entity in each…

Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…

A: Average inventory level =Optimal order quantity2=2,500 units2=1,250 units

Q: Corporation resells one product to a small isolated community. It sells an average of 60 sacks, but…

A:

Q: Demand for a product is 12,000 units per year. Every time an order is made, the company must pay…

A: Cost of inventory is the total cost of ordering and carrying the inventory.

Q: Charlotte sells widget that cost $50 each to purchase and prepare for sale. Annual demand is 10,000…

A: Please see the next step for the solution

Q: Faber Manufacturing, Inc., of St. Paul, Minnesota has an economic order quantity considering…

A: The maximum level of inventory is the maximum quantity of material which have to keep in store. We…