Question 4:Compute the EOQ given the following information.The annual consumption is 6000 units, ordering cost is RO 60 perorder and carrying cost is 20% of the price.The supplier quotes the following prices for the component.No of units bought at time Price per unitLess then 1000OMR 101000 to 2999OMR 9.53000 and aboveOMR 9What is the optimal order quantity?

EOQ= 2×A×OH Where, A is Annual Demand O is Ordering Cost H is Holding Cost Annual Total Cost= (AQ×O)…

Answered: Question 4: Compute the EOQ given the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute the EOQ given the following information.The annual consumption is 6000 units, ordering cost is RO 60 per order and carrying cost is 20% of the price.The supplier quotes the following prices for the component.No of units bought at timePrice per unitLess then 1000OMR 101000 to 2999OMR 9.53000 and aboveOMR 9What is the optimal order quantity?
Compute the EOQ given the following information. The annual consumption is 6000 units, ordering cost is RO 60 per order and carrying cost is 20% of the price. The supplier quotes the following prices for the component. No of units bought at time Price per unit Less then 1000 OMR 10 1000 to 2999 OMR 9.5 3000 and above OMR 9 What is the optimal order quantity?
Use the following demand and supply functions: Demand: Qd = 900 - 60PSupply: Qs = -200 + 50P If the price is currently $11, there is a surplus of 350 units. surplus of 110 units. shortage of 700 units. shortage of 240 units.
Assume that Demand (D) = 10,000 units and Ordering Cost (S) = $10 (per order). Suppose that we order at the Economic Order Quantity (EOQ) and the total inventory cost TC $500. What is the EOQ?
Find the optimal order quantity of a product for which the price breaks are as follows: Quantity(units) Price per unit(Rs.) 0 < Q1 < 100 20.00 100 <= Q2 < 200 18.00 200 <= Q3 16.00 The monthly demand for the product is 200 units, the storage cost is 20 percent of the unit cost and the cost of ordering is Rs. 25 per order.
If Actual sales are OMR 470000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)? Select one: a. MS=100000 and MS (%)=16 b. MS=62000 and MS (%)=13.42 c. MS=73000 and MS (%)=15.15 d. MS=70000 and MS (%)=14.89 Clear my choice
How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9% interest each year? a. $546,000 O b. $456,427 O c. $645,000 O d. $456,000
K Suppose that a company offers quantity discounts. If up to 1,000 units are purchased, the unit price is $12; if more than 1,000 and up to 5,000 units are purchased, the unit price is $8.00; and if more than 5,000 units are purchased, the unit price is $7.50. Develop an Excel template using the VLOOKUP function to find the unit price associated with any order quantity and compute the total cost of the order. Complete the formulas in the spreadsheet below. Select the correct VLOOKUP function in cell C8 to find the unit price for the order quantity. (Type integers or decimals rounded to two decimal places as needed.) 1 2 3 5 6 7 8 6 A B C Purchase Quantity 1 to 1000 1001 to 5000 5001 or more Quantity Ordered Unit Price Total Cost 2400 D Unit Price $ $ $
2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units. 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve cost of RO 1.50 per unit when bought in large quantities, and the carrying cost is estimated to be 20% of average inventory investment on an annual basis. The cost to place an order and process the delivery is RO18. It takes 45 days to receive…
Sales are 150000 OMR, variable cost = 110000 OMR, Fixed cost 90000 calculate :BEP sales Select one
A manager has the option of purchasing 1, 2, or 3 machines. The computed VC is 10perunitandrevenueperunitis40. FC and potential volumes are as follows: # of Machines Fixed Cost Range of Output 1 $ 9,600 0-300 2 15,000 301-600 3 20,000 601-900 a. Determine the BEP of each range using the formula. b. If the annual demand is between 580 to 660 units, how many machines should the manager purchased?
The Weighted Mean2\ If a manufacturer buys 200 units at OMR 5 per unit from one supplier and 500 units at OMR 3 per unit from another, Find the average cost per unit accurately.

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