A car-making company buys 2,000 steel parts at Rs 140 per part for assembly. The buying cost

Fantastic news! We've Found the answer you've been seeking!

Question:

A car-making company buys 2,000 steel parts at Rs 140 per part for assembly. The buying cost per order is Rs 35. The inventory carrying cost is Rs 14 per unit per year, calculated as follows:

Return on investment is 8%	11.20
Rent, taxes, insurances, handling charges, etc.	Rs 2.80.

Calculate the EOQ.

Related Book For answer-question

Auditing and Assurance services an integrated approach

ISBN: 978-0132575959

14th Edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

See More Books

Posted Date: Dec 22, 2020 12:15 PM

See More Questions

A two-year bond with par value $1,000 making annual coupon payments of $93 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) b.What will be...
A company buys new computer equipment for 10 000 pounds. At the same time it buys 3 pens for 40 pence each. Define the following accounting conventions and explain how they would affect the recording...
What is the correct answer (with the appropriate number of significant figures) for the calculation of 7.5+ 2.26 + 1.311+ 2? 13 13.071 10 13.0
?? Helen's investment of $500 has grown, at a rate of 13% compounded annually, for 45 years. What is the value of her investment today?
Can a nation have a favourable balance of trade and an unfavourable balance of payments? Why or why not?
What is the correct symbol for the species that contains 18 neutrons, 17 protons, and 16 electrons?
Which class of stockholders takes the greater investment risk? a. Common b. Preferred c. Neither; bondholders take the most risk d. Both preferred and common take equal risk
To study damage to aircraft that collide with large birds, you design a test gun that will accelerate chicken-sized objects so that their displacement along the gun barrel is given by x = (9.0 X 103...
Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a...
Martha died this year with a net allowable capital loss for the year of death of $100,000. She had income from all sources of $5,000 in the year of death, $30,000 last year, and $27,000 two years...
Life Turn Co. is a pharmaceutical company. Life Turn has no debt and 100 million shares outstanding. To build a new warehouse to support the production of the new medicine, the company must raise...
Antietam Ltd makes up accounts to 30 September annually. Results for the 12 months to 30 September 2023 are as follows: The company has capital losses brought forward from previous accounting periods...
The following information is available for Online Ltd for the year to 31 March 2024: Operating profit Online Ltd's operating profit for the year to 31 March 2024 is 896,700. Depreciation of 21,660...
Neil has been in business for many years preparing accounts to 5 April each year. His profits in a typical year (adjusted for tax purposes) are approximately 50,000 and his drawings are 3,000 per...
On 31 March 2001, Estelle acquired a patent with a 42-year life at a cost of 21,000. She sold the patent on 31 March 2024 for 73,000. Compute the chargeable gain.
In January 2021 Katrina buys an item of movable plant and machinery for use in her business. The plant costs her 50,000 and capital allowances are claimed. Compute the chargeable gain arising in...
1. Let X1, X2, ..., Xbe independent, identically distributed random variables with p.d.f. f(x) = 0x0-1,0 x 1. a. Find the maximum likelihood estimator, , for 0. b. Find 1(0). C. Find a large sample...
The power company must generate 100 kW in order to supply an industrial load with 94 kW through a transmission line with 0.09  resistance. If the load power factor is 0.83 lagging, find the...
Define what is meant by inherent risk. Identify four factors that make for high inherent risk in audits.
The Frist Corporation has the following internal controls related to inventory: 1. The inventory purchasing system only allows purchases from pre-approved vendors. 2. The perpetual inventory system...
The physical inventory for Ajak Manufacturing was taken on December 30, 2011, rather than December 31, because the client had to operate the plant for a special order the last day of the year. At the...
The kilogram force is commonly used in Europe as a unit of force. (As in the U.S. customary system, where $1 \mathrm{lbf}$ is the force exerted by a mass of $1 \mathrm{lbm}$ in standard gravity,...
The maximum theoretical flow rate (slug/s) through a supersonic nozzle is \[\dot{m}_{\max }=2.38 \frac{A_{t} p_{0}}{\sqrt{T_{0}}}\] where $A_{t}\left(\mathrm{ft}^{2} ight)$ is the nozzle throat...
From thermodynamics, we know that the coefficient of performance of an ideal air conditioner $\left(C O P_{\text {ideal }} ight)$ is given by \[C O P_{\text {ideal }}=\frac{T_{L}}{T_{H}-T_{L}}\]...

A car-making company buys 2,000 steel parts at Rs 140 per part for assembly. The buying cost

Question:

Expert Answer:

O ora Caning lavt por vniz por Cinn E0Q12Amul Re... View the full answer

Auditing and Assurance services an integrated approach

Students also viewed these general management questions