Firm X faces regular demand of 150 units per month, it orders from its supplier at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of £25. Each order costs £32, and holding cost is 18% p.a. of the purchase price. Required (a) Calculate the economic order quantity, and the average inventory level. Calculate total inventory related cost at this economic order quantity. (b) Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of £25. Each order costs £32, and holding cost is 18% p.a. of the purchase price. Required (a) Calculate the economic order quantity, and the average inventory level. Calculate total inventory related cost at this economic order quantity. (b)
Expert Answer:
Answer rating: 100% (QA)
a Economic Order Quantity 2AOC 218003245 11520045 25600 160 A... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
Students also viewed these general management questions
-
Prepare the journal entries to record these transactions on Allied Companys books using a periodic inventory system. (a) On March 2, Allied Company purchased $1,000,000 of merchandise from B....
-
Prepare the journal entries to record these transactions on Koeller Companys books using a periodic inventory system. (a) On March 2, Koeller Company purchased $800,000 of merchandise from Reeves...
-
Prepare the journal entries to record these transactions on Jerel Companys books using a periodic inventory system. (a) On March 2, Jerel Company purchased $900,000 of merchandise from McNeal...
-
How do standard costs illustrate the trade-off between decision making and control?
-
Tort claims survive the death of the tortfeasor, and the damages are payable from the wrongdoer's estate. Assume a wrongdoer commits a tort that meets the requirements for punitive damages, but...
-
Your thumb squeaks on a plate you have just washed. Your sneakers often squeak on the gym floor. Car tires squeal when you start or stop abruptly. You can make a goblet sing by wiping your moistened...
-
Consider the IRR and ERR measures of worth. If we define a root to mean a value for the measure that results in \(\mathrm{PW}=0\), then which of the following statements is true? a. Both IRR and ERR...
-
The comparative balance sheet of Hinson Enterprises, Inc. at December 31, 2013 and 2012, is as follows: Additional data obtained from the income statement and from an examination of the accounts in...
-
Consider that the current world price for copper ore it's $3.90 per pound. Suppose that domestic market for copper ore in Chile is described by the following demand and supply equation respectively P...
-
Consider the following network representation of a transportation problem: The supplies, demands, and transportation costs per unit are shown on the network. a. Develop a linear programming model for...
-
After 5 years, a $2,450 investment is worth $3,123.75. What is the simple annual interest rate for this investment? Enter the answer as a percent.
-
The consolidation adjustment to eliminate the parents investment and the subsidiarys equity at the date of acquisition is passed once in the first year of acquisition and not subsequently. True/False
-
A group may comprise a parent, its subsidiaries, and the subsidiaries of its subsidiaries. True/False
-
Goodwill impairment losses in previous years will have to be credited to opening retained earnings in the consolidation workpapers. True/False
-
Goodwill is the difference between consideration transferred and the share of fair value of the net assets of a subsidiary. True/False
-
Equity components, which are not present ownership interests and do not entitle their holders to a pro-rata share of net assets, are measured at nil balance at the date of acquisition. True/False
-
Put Your Money Where Your Mouth Is For yourassignment, you will select a stock and determine the historical volatility of the stock. Part OneGather Your Data Select a stock that you'd like to learn...
-
The first law of thermodynamics is sometimes whimsically stated as, You cant get something for nothing, and the second law as, You cant even break even. Explain how these statements could be...
-
Elbert Company accumulates the following summary data for the year ending December 31, 2014, for its Water Division, which it operates as a profit center: sales $2,000,000 budget, $2,080,000 actual;...
-
Milton Professionals, a management consulting firm, specializes in strategic planning for financial institutions. James Hahn and Sara Norton, partners in the firm, are assembling a new strategic...
-
At the high and low levels of activity during the month, direct labor hours are 90,000 and 40,000, respectively. The related costs are $165,000 and $100,000. What are the fixed and variable costs at...
-
Cinnamon, Inc. recorded a total deferred tax asset in Year 3 of \($12\),301, off set by a \($12\),301 valuation allowance. Cinnamon most likely: A . fully utilized the deferred tax asset in Year 3. B...
-
Midland Brands issues three-year bonds dated January 1, 2015 with a face value of $5,000,000. Th e market interest rate on bonds of comparable risk and term is 3%. If the bonds pay 2.5% annually on...
-
A company issues $1,000,000 face value of 10-year bonds on January 1, 2015 when the market interest rate on bonds of comparable risk and terms is 5%. Th e bonds pay 6% interest annually on December...
Study smarter with the SolutionInn App