Mr. Ahmed works in a bakery which operates 6 days a week, 50 weeks a year....

 

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Mr. Ahmed works in a bakery which operates 6 days a week, 50 weeks a year. The bakery needs flour which is delivered to the bakery at 10 OMR each order. Each operational day, Mr. Ahmed needs 10 bags of four, 10 kg weight each bag. Each bag costs OMR 12. The annual holding cost per bag is 15% of the purchase price of bag. If the shelf life of the flour bags is 2 weeks only, and Mr. Ahmed orders only accordingly to meet the demand for 2 weeks each order, then what will be the total variable cost per year? (1.5 points) A. 320.00 B. 331.80 c. 358.00 D. 368.00 E. None is correct, the correct answer is Mr. Ahmed works in a bakery which operates 6 days a week, 50 weeks a year. The bakery needs flour which is delivered to the bakery at 10 OMR each order. Each operational day, Mr. Ahmed needs 10 bags of four, 10 kg weight each bag. Each bag costs OMR 12. The annual holding cost per bag is 15% of the purchase price of bag. If the shelf life of the flour bags is 2 weeks only, and Mr. Ahmed orders only accordingly to meet the demand for 2 weeks each order, then what will be the total variable cost per year? (1.5 points) A. 320.00 B. 331.80 c. 358.00 D. 368.00 E. None is correct, the correct answer is

Answer rating: 100% (QA)

Annual DemandD 10506 3000 Bags Ordering cost per orderS 10 OMR Price per ... View the full answer