1.A firm uses 6,000 tonnes of commodity X every year. The fixed transaction costs involved with each...
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1.A firm uses 6,000 tonnes of commodity X every year. The fixed transaction costs involved with each order are 80. Each tonne of X held in stock costs 6 per annum. How many separate orders for X should the firm make during the year?
2. If each order for a batch of components costs 700 to make, storage costs per annum per component are 20 and annual usage is 4,480 components, what is the optimal order size?
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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