A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost is $10, ordering cost is $30, and the cost of carrying inventoryis 20%. The supplier offers a discount of 3% on orders of 1000 units or more. Whatwill be the saving (loss) of accepting the discount?
Q: Given the cost per king-size sheet set above and assuming the manufacturer has total fixed costs of…
A: Given: Fixed cost = $500,000 Unit sales = 50,000
Q: The ordering cost for a certain product is $8 per order and the holding cost is $1 per year. The…
A: Ordering Cost :— It is the expenses incurred by company for ordering of product. Holding cost :—…
Q: X Ltd. has annual sales of 10,000 units at $300 per unit. The annual fixed costs amount to $300,000.…
A: Existing Proposed Total cost other than bad debts 2,300,000 2,400,000 2,960,000 Collection…
Q: The TOPSHOP company has a monthly demand for an item of 1,000 units/month. This company operates…
A: Answer 3A For the given quantity discount =12% is applies Actual unit price =$10Discount…
Q: Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that…
A: Economic order quantity (EOQ) model is prepared to minimize the total holding cost and ordering…
Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…
A: Units = 30,000 Selling price = P Sales = 30000*P = 30000P Variable cost = P 25 Variable cost =…
Q: A Company estimates that its carrying cost is 20% of the purchase price and its ordering cost at $40…
A: Economic order quantity represents quantity that leads to minimum cost of the inventory.
Q: H&M chief demand planner has estimated that 9250,000 units of clothing sold in 2021.H&M cost of…
A: Economic Order Quantity - EOQ helps the company ensure the quantity that needs to order quantity…
Q: total contribution margin
A: We know that as per Marginal Costing Contribution Margin = Sales Revenue - Total Variable Cost It…
Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following information relates to a company . The fixed cost per order is ksh 1,500 The…
A: SOLUTION- ECONOMIC ORDER QUANTITY = 2*A*O / C A= ANNUAL DEMAND O= ORDERING COST C= CARRYING COST…
Q: An item sells for P25 a unit, but a 10% discount is offered for lots of 150 units or more. A company…
A:
Q: The Best Furniture company produces a specialty wood furniture product, and has the following…
A: The details are provided of a company produces specially wood furniture product Required What is…
Q: Alpha retail store predicts an annual demand of 4800 kgs of a food product . It costs RO 100 to make…
A: Following is the answer to the given question
Q: What is BBOS’s total inventory cost per year,
A: The optimum units of any given product that must be ordered such that its ordering and holding…
Q: Assume that Palmer Executive Pens uses 1,250,000 gallons of ink each year. Further, assume that…
A: Step 1 Economic Order Quantity is the level of inventory where inventory holding and carrying cost I…
Q: . Leyla Tas has determined that the annual demand for #6 screws is 100000 screws. Leyla, estimates…
A: Annual Cost = 100,000 Cost per order = 10MU Storage Cost = 1 x 12 x100 = 0.005
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Semi annual requirement = 39000 Units Annual requirement (A) = 39000*2 = 78000 Units Price per unit…
Q: Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The…
A: EOQ formula: EOQ = [2*d*s/h]^0.5 where d = annual quantity = 2,400,000 s = cost per order = 15 h =…
Q: pioneer limited purchases a product which has a steady monthly demand of 20000 units. The product…
A: EOQ is the quantity that minimises total holding cost and which order costs.
Q: Furnco sells office chairs. Annual demand is normally distributed with a mean of 1040 chairs and a…
A: No of orders to be placed = A ÷ EOQ where A = annual units demanded EOQ = economic order…
Q: A product has a daily demand 60 unitsOrdering cost RO 200, and holding cost RO 3 per unit per year.…
A: Economic order quantity is the method of inventory management where we calculate how much units are…
Q: Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable…
A: Contribution Margin = ( Unit Sales Price - Unit Variable Cost ) x Number of units Net profit=…
Q: Assume that Cane expects to produce and sell 80,000 Alphas during the current year. One of…
A: Since the costing information is not given, my answer would be based on revenue.
Q: The Titan Company provides you with the following information for the current year: Revenues =…
A: It is given that cost of goods sold = $750,000 2/3rd of the above is variable , variable cost =…
Q: a. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the…
A: a.Calculation of EOQ:
Q: Tiger Corporation purchases 1,400,000 units per year of one component. The fixed cost per order is…
A: 1) Formula:
Q: The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per…
A: Economic Order Quantity: The economic order quantity is the ordering level at which the storage cost…
Q: pioneer limited purchased a product which has a steady monthly demand of 20 000 units. the product…
A: SOLUTION- FORMULA- ECONOMIC ORDER QUANTITY= 2×A××O/C A= ANNUAL DEMAND…
Q: Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order,…
A: Economic Order Quantity refers to optimal level of inventory being purchased by an entity while…
Q: Detox corp planned to sell 25,000 units during the next quarter at a selling price of P52 per unit.…
A: Income and expenses of an entity will be displayed in its income statement where it has all the…
Q: what is the minimum selling price the company will have to charge per unit?
A: Given in the question: Monthly Fixed Costs = £230,000 Marginal Cost per Unit = £76 Profit required…
Q: A trading company expects to sell 15,000 mixers during the coming year. The cost of storing a mixer…
A: Economic order quantity: Economic order quantity is the method that helps to determine the best…
Q: (i) Electronics Ltd manufactures air conditioners. It purchases 200,000 units of a particular type…
A: EOQ= √ 2AO/C A=annual purchase units =200000 O = ordering cost =50*$18 =$900 C=carrying…
Q: Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make…
A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…
Q: A company uses components at the rate of 15,000 units per year, which are bought in at a cost of…
A: Holding cost:-This cost incurred in carrying the inventory in-store, therefore it is also known as…
Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…
A: Given: Optimal order quantity = 2,500 units Safety stock = 500 units Price per unit = P4 Annual…
Q: Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is…
A: Per unit carrying cost=20%×$50=$10
Q: A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is…
A: As per Bartleby guideline, if questions are interlinked then first three sub parts to be answered.…
Q: A supplier sells Hipoint-brand pens to stationary shops. The annual demand is approximately 24,000…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much…
A: EOQ, Economic Order Quantity can be defined as the position of ordering the goods according to the…
Q: Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that…
A: The question is based on the concept of finding economic order quantity (EOQ) . EOQ is defined as…
Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…
A: Average inventory level =Optimal order quantity2=2,500 units2=1,250 units
Q: NUBD Co. plans to market a new product. Based on its market studies. It estimates that it can sell…
A: Break-Even Point: The breakeven point is the moment at which a product's expenses equal its…
Q: Faber Manufacturing, Inc., of St. Paul, Minnesota has an economic order quantity considering…
A: The maximum level of inventory is the maximum quantity of material which have to keep in store. We…
Q: A supplier sells MF Tires to dealers. The annual demand is approximately 1,000 tires. The supplier…
A: Economic order quantity means the quantity to be order so that total inventory cost will be…
A company is presently ordering on the basis of an EOQ. The demand is 10,000
units a year, unit cost is $10, ordering cost is $30, and the cost of carrying inventory
is 20%. The supplier offers a discount of 3% on orders of 1000 units or more. What
will be the saving (loss) of accepting the discount?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- a. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying cost are $3.50 per unit? b. how long will the EOQ last? how many orders are placed annually? c. as a result of lower interest rates, the finnancial manager determines the carrying cost are now $1.80 per unit. what are the new EOQ and annual number of objects?Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The fixed cost is P15 per order, and the carrying cost is 30% of the purchase price.a. Calculate the EOQ.b. Calculate the EOQ if the order cost is zero. c. Calculate the EOQ if the order cost is P10 per order.d. What is the implication to the firm if there is a decrease in the order cost?Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily, the company sell 30,000 units per year; however, it is considering lowering its price to $4.50 per unit. At the lower price, the company expects to sell 49,250 units per year. What total contribution margin will the company earn if it sells 49,250 units at a price of $4.50 per unit? Multiple Choice $69,400 $73,875 $64,025 $83,725
- Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Wyteboard's minimum costs of ordering and holding inventory?Please provide a solutionAn inventory item has a demand of 10,000 units per month. The cost of each unit is $6, and the interest on tied-up money is 10%. The average ordering cost is $250 per order. a) What is the EOQ? units (round your response to the nearest integer). b) What is the optimal number of orders per year? to the nearest integer) c) What is the optimal number of days between any two orders? your response to the nearest integer) d) What is the annual holding cost? $ nearest integer) orders (round your response e) What is the total annual cost of the inventory system? $ to the nearest integer) days (round per year (round your response to the (round your responseWhat is the EOQ for a firm that sells 5,800 units when the cost of placing an order is $5.20 and the carrying costs are $4.00 per unit? Round your answer to the nearest whole number. units How long will the EOQ last? Use the rounded value from the previous question. Assume 365 days in a year. Round your answer to the nearest whole number. days How many orders are placed annually? Assume 365 days in a year. Use the rounded value from the previous question. Round your answer to the nearest whole number. orders per year As a result of lower interest rates, the financial manager determines the carrying costs are now $2.2 per unit. What is the new EOQ? Round your answer to the nearest whole number. units What is the annual number of orders? Assume 365 days in a year. Use the rounded values of the new EOQ and duration of the new EOQ in your calculations. Round your answer to the nearest whole number. orders per year
- A company is assessing granting credit to a new customer. The variable cost per unit is $88, the current price is $115, the probability of default is 34% and the monthly required return is 4.0%. Calculate the NPV of the switch. Assume the customer will purchase once.Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100 per order, carrying costs are 5% of the inventory value, and the price is of $2.00 per box. The vendor now offers a quantity discount of 1% per box if the company buys pens in order sizes of 20,000 boxes. Should the company accept the quantity discount? Show your calculations to justify your decision.a seller has offered credit terms of 2.5/5 net 50 to a customer that has agreed to immediately purchase 500 units at a sales price per unit of $100. variable costs are $65 per unit and involve an immediate cash outflow. the seller has an annual opportunity cost rate of 7.3%. based on this information, what is the present value of the net flows associated with the cash discount terms? is it - 16,201; 26,750; 81,201; 32,500
- Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Wyteboard's minimum costs of ordering and holding inventory? SHOW THE ANSWER IN A GOOD ACCOUNTING FORMAn item sells for P25 a unit, but a 10% discount is offered for lots of 150 units or more. A company uses this item at the rate of 20 units per day. The set up cost for ordering a lot is P50, and the holding cost per unit per day is P0.30. should the company take advantage of the discount?Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Wyteboard's minimum costs of ordering and holding inventory?