(a) At present a company purchases an item X from outside suppliers. The consumption of this...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) At present a company purchases an item X from outside suppliers. The consumption of this item is 10,000 units/year. The cost of the item is Rs 5 per unit and the ordering cost is estimated to be Rs 100 per order. The cost of carrying inventory is 25 per cent. If the consumption rate is uniform, determine the economic purchasing quantity. (b) In the above problem assume that company is going to manufacture the item with the equipment that is estimated to produce 100 units per day. The cost of the unit thus produced is Rs 3.50 per unit. The set-up cost is Rs 150 per set-up and the inventory carrying charge is 25 per cent. How has your answer changed? [Jammu Univ, MВА, 1990] (a) At present a company purchases an item X from outside suppliers. The consumption of this item is 10,000 units/year. The cost of the item is Rs 5 per unit and the ordering cost is estimated to be Rs 100 per order. The cost of carrying inventory is 25 per cent. If the consumption rate is uniform, determine the economic purchasing quantity. (b) In the above problem assume that company is going to manufacture the item with the equipment that is estimated to produce 100 units per day. The cost of the unit thus produced is Rs 3.50 per unit. The set-up cost is Rs 150 per set-up and the inventory carrying charge is 25 per cent. How has your answer changed? [Jammu Univ, MВА, 1990]
Expert Answer:
Answer rating: 100% (QA)
a Annual demand D 10000 units Unit cost c Rs 5 Ordering co... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
Students also viewed these management leadership questions
-
A thread carrying a uniform charge λ per unit length has the configurations shown in Fig. 3.2 a and b. Assuming a curvature radius R to be considerably less than the length of the thread, find...
-
A thin uniform donut, carrying charge Q and mass M, rotates about its axis as shown in Fig. 5.64. (a) Find the ratio of its magnetic dipole moment to its angular momentum. This is called the...
-
Company L sold an inventory item to Firm M for $40,000. Company Ls marginal tax rate is 35 percent. In each of the following cases, compute Company Ls after-tax cash flow from the sale: a. Firm Ms...
-
How does Apple Inc apply Marketing and Advertising To market their product? Direct advertising Indirect Advertising Social Media (Paid Media, Owned Media, Earned Media)
-
The Wall Street Journal reports that the rate on three-year Treasury securities is 5.60 percent and the rate on four-year Treasury securities is 5.65 percent. According to the unbiased expectations...
-
The OToole Company has the following balance sheet data (in millions): Net income for 20X2 was $60 million. Net cash inflow from operating activities was $72 million. Cash dividends paid were $10...
-
Which of the following is an activity not usually associated with forensic accounting and fraud examination consulting and litigation support? 1. A. Assessing fraud risk associated with internal...
-
In September 2009, The Walt Disney Company announced that it would acquire Marvel Entertainment in a $4 billion cash and common stock deal. On a per-share basis, the consideration given by Disney to...
-
On a private flight with capacity for 150 people, $800,000 per person is charged, plus $25,000 for each unsold seat on the plane. How many people must travel on the plane and what will be the price...
-
For each of the following independent cases, fill in the blank with the appropriate dollar amount. Assets - Liabilities + Owners' Equity $ 75,000 Case 1 Case 2 Case 3 $125,000 400,000 100,000 95,000...
-
Exercise (8): Hemberger Corporation currently produces baseball caps in an automated process. Expected production per month is 20,000 units, direct material costs are $3.00 per unit, and...
-
Find the x- and y-intercepts of the graph of the equation HOME HERMAN FACER ww COTTONE Op S 15 20 - dil L P O O TO S m S BESIDE P 18-zx x+9
-
Your lunch was made at 7:45am and contained 49 bacteria. This bacteria triples every 30 minutes. How many bacteria do you consume if you eat this sandwich at noon, rounded to the nearest hundred...
-
Find the following functions. Simplify your answers. 1 x - 4 Find the following functions. Simplify your answers. f(g(x)) = g(f(x)) = 4 and g(x) = +4. X Let f(x) =
-
Consider a function f(x) whose derivative f (x) is given below. Find (i) all critical values, (ii) all intervals on which f(x) is increasing and decreasing, and (iii) the x-value of all relative...
-
If x is not the square of an integer, then the value of 7 + x+ 1/(5-x) is a rational number for only one positive integer y. What is this value of ? (It cannot be 1 or 0)
-
Kelemen, Inc. provides the following information for 2017: Net income $260,000 Market price per share of common stock $50 per share Dividends paid $190,000 Common stock outstanding at Jan. 1, 2017...
-
Assume that your audit team has established the following parameters for the examination of ELM's sales transactions: LO G-3 Risk of incorrect acceptance...
-
Benderboard produces corrugated board containers that the nearby wine industry uses to package wine in bulk. Benderboard buys kraft paper by the ton, converts it to heavy-duty paperboard on its...
-
What are the reasons that the cost of poor quality reached an epidemic level before U.S. companies were motivated to do something about the problem in the 1980s?
-
Lets be more practical. DCF is not the only gospel. Many managers have become too absorbed with DCF. Can such a statement be justified? Why?
-
Draw Bode plots for a sixth-order Pade approximation to a pure delay of 1 second.
-
A rejection network that can be utilised instead of the twin-T network is the bridged-T network shown below. The transfer function of this network is given by \[...
-
Sketch the polar plot of the frequency response for the following transfer functions: 1 (a) KG(s): = (1+0.5s) (1+2s) (1+0.5s) (b) KG(s) = $2 s+10 (c) KG(s) = s2+6s+10 30(s+8) (d) KG(s) = s(s+2)(s+4)
Study smarter with the SolutionInn App