Question: ABC Aircraft uses 3000 drill bits annually. Each drill bit costs $90 and each order ABC places costs $20. Carrying costs are 40% of unit

ABC Aircraft uses 3000 drill bits annually. Each drill bit costs $90 and each order ABC places costs $20. Carrying costs are 40% of unit cost. ABC has contracted with the supplier of the drill bits to use an order quantity of 200 by doing which they receive a 3% discount on purchase price. Compute the annual total cost (ie the Purchase cost + Ordering cost + Holding cost) for the order quantity of 200. Do not include a dollar sign in the answer box. Specify only the amount eg, 40000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

ABC Aircraft uses 3000 drill bits annually. Each drill bit costs $80 and each order ABC places costs $35. Carrying costs are 40% of unit cost. ABC has contracted with the supplier of the drill bits...

ABC Aircraft uses 1000 drill bits annually. Each drill bit costs $60 and each order ABC places costs $20. Carrying costs are 40% of unit cost. ABC has contracted with the supplier of the drill bits...

Answer: ABC Aircraft uses 1000 drill bits annually. Each drill bit costs $60 and each order ABC places costs $20. Carrying costs are 40% of unit cost. ABC has contracted with the supplier of the...

ABC Aircraft uses 1000 drill bits annually. Each drill bit costs $40 and each order ABC places costs $10. Carrying costs are 10% of unit cost. ABC has contracted with the supplier of the drill bits...

ABC Aircraft uses 2000 drill bits annually. Each drill bit costs $50 and each order ABC places costs $30. Carrying costs are 20% of unit cost. ABC has contracted with the supplier of the drill bits...

ABC Aircraft uses 1000 drill bits annually. Each drill bit costs $80 and each order ABC places costs $30. Carrying costs are 25% of unit cost. ABC has contracted with the supplier of the drill bits...

Calculate and show all calculation steps for weights, cost of debts, costs of equities, and weighted average costs of capital with proper written explanations. In particular, (most importantly) show...

Management accounting assignment: Write a critique with reference list. Please help me write something as much as you could. Analysing technology investmentsfrom NPV to Strategic Cost Management...

Following is Excel output for an ANOVA problem. Describe the experimental design. The given value of alpha was .05.Discuss the output in terms of significantfindings. Anova: Two-Factor Without...

Can you please help me!? And do you know what title of the book this belong?? 6.18 A portion of a power system is shown in Fig. 6-17, which also shows the ratings of the generators and the...

Initially, the exchange rate betwece Masodonian denars and Tumixian dinar is in equllbriam. Then therr is an increase ie mapply of Tunisian dinar. As a rosult of an increase in supply of Tumisian...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...