Q15. The annual requirement of an item is 18,000 units. Unit cost of material is Rs. 27 and ordering cost is Rs. 150 per order. The inventory carrying cost is 20% of the average inventory per annum. Required: (i) Calculate economic order quantity and number of order per year. (ii) Would Compare the total cost in the both cases. (2) you accept a 2% price discount on a minimum supply of quantity of 1,200 units? (3)
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- JYP Store purchases shirts printed with GOT7 name and logo from a vendor. The vendor sells the shirts to the store for RM40 each. The cost to the store for placing an order is RM110, and the annual carrying cost is 20% of the cost of the shirt. Jackson, the store manager, estimates that 1,600 shirts will be sold during the year. The vendor has offered the store the following volume discount in Table 3. [Kedai JYP membeli baju yang di cetak dengan nama dan logo GOT7 dari pembekal. Pembekal menjual baju kepada kedai dengan harga RM40 sehelai. Kos untuk membuat tempahan ialah RM110, dan kos memegang tahunan ialah 20% dari harga kos sehelai baju. Jackson, pengurus kedai, menjangkakan sebanyak 1,600 baju akan dijual setahun. Pembekal menawarkan kepada kedai berdasarkan Jadual 3.] Table 3: Discount schedule [Jadual 3: Jadual diskaun] ORDER SIZE DISCOUNT 1 – 299 0% 300 – 500 2% 501 and more 4% Determine the best order size of shirts.JYP Store purchases shirts printed with GOT7 name and logo from a vendor. The vendor sells the shirts to the store for RM40 each. The cost to the store for placing an order is RM110, and the annual carrying cost is 20% of the cost of the shirt. Jackson, the store manager, estimates that 1,600 shirts will be sold during the year. The vendor has offered the store the following volume discount in Table 3. Table 3: Discount schedule [Jadual 3: Jadual diskaun] ORDER SIZE DISCOUNT 1- 299 300 – 500 0% 2% 501 and more 4% (i) Calculate optimal order quantity based on the quantity discount information. [Hitungkan kuantiti pesanan optimal berdasarkan maklumat jadual diskaun.] (ii) Calculate total annual inventory cost. [Hitungkan kos inventori tahunan total.] (iii) Determine the best order size of shirts. [Tentukan saiz tempahan baju yang terbaik]a. For how much does Nicolas Appliance Center sell an electric fan? 2. Nicolas Appliance Center has purchased electric fans for Php 800 eac The electric fans are marked up 48% of the selling price. b. What is the rate of markup based on cost?
- 3. Aapki Humaari Beauty LLP requires 12000 units of Bear Shampoo annually as a part of its sales requirement, ordering one month usage at a time. Each shampoo bottle costs Rs 100.The ordering cost per order is Rs 50 and the carrying cost of the average inventory on a yearly basis is 10% You as an adviser to the company advise to buy the most economical order size. a. The company looks forward for your advice on understanding the concept of economic order size. b. Advise what should be desired quantity as per the economic purchase policy of the company and how much the company may save on account of ordering cost. Note : You can round off any number to lower side for the calculation purposeA distributor sells water cooling units for $860 each. The operating profit is 25% on cost and markup is 60% on cost. a. Calculate the cost per cooling unit. Round to the nearest cent b. Calculate the rate of markdown offered during a sale if it made a profit of $51.40 per machine. % Round to two decimal places c. What should be the rate of markdown offered to sell the machines at the cost price? % Round to two decimal placesA wholesaler purchases widgets for $8 per unit from the manufacturer and sells it to retailers who then sell to consumers. The wholesaler marks up by 20% on the retailer purchase price, while the retailers mark up by 25% on the wholesaler selling price. Here, the retail selling price to the consumer is: O $12.00 O $12.80 All the other 4 answers are correct. $12.50 O $13.33
- If a home goods retailer pays $32.50 for the vacuum cleaner shown here, answer the following questions. (Round dollars to the nearest cent and percents to the nearest tenth of a percent.) 12-AMP POWERVAC PLUS $899 • Microfiltration • On-board tools 1-yr. Product Replacement Policy, $7.99 (a) What is the percent markup based on selling price? 63.7 % (b) If the retailer pays $1.40 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination? % (c) If 6,000 vacuum cleaners are sold in a season and 40% are sold with the insurance policy, how many additional "markup dollars," the gross margin, were made by offering the policy? $ |(d) As a housewares buyer for the retailer, what is your opinion of such insurance policies, considering their effect on the "profit picture" of the department? How can you sell more policies?Q1. TınazFormers sells a patented product called the CoronaKiller. This device, which sells for $70, is very popular. The CoronaKiller is sold through a distributor who sells to retail stores and to the public through TV Shows. The distributor pays TınazFormers $30 for each CoronaKiller. TınazFormers also sells them through 15-minute television shows and on the Healthy TV for $70 plus $15 for shipping and handling. Although each TV Show increases the public awareness of the product, thereby stimulating sales in the retail stores, TV Show sales also preempt retail sales. The distributor sells sufficiently large numbers of units that, for every 10 CoronaKillers sold via the TV Show, two units will not be sold in a retail outlet. For each unit sold on the TV Show, TınazFormers TınazFormers pays $5 to the shipping company for mailing and $2 to the phone-answering company for providing the toll-free number and processing the order. TınazFormers purchases CoronaKillers from the manufacturer,…Tutorial Q. 4 Khalid is a salt merchant who supplies salt to general merchants in Lahore city. In the year of 2020 he sold 35,000 bags of salt. One bag consists of 50kg salt. He purchases slat in raw form and then grinds it, fills it in bags and then sold it, Sale price per bag is RM 45. He purchases the raw salt @ RM 400 per ton (1 ton consist of 1000 kg). Grinding cost is RM7 per bag, carriage outward cost is RM 5 per bag, he also purchases empty bags @ RM400 per 100 bags. Rent of shop RM1500 per month. Electricity and phone expense is RM16,000 per year (assume fixed). Depreciation of plant is RM3,680 per year. In the year 2021 it is expected that sale price and demand will remain the same but all the variable costs will increased by 15%. All the fixed costs will also increase by 10%. Required: 1. Break-even point in units and RM in both year. 2. Income statements of both year. 3. If he wants to earn RM 350,000 in the year of 2021 how many bags he has to sell. 4. Assume that demand…
- 2. A branded cellphone is on sale having a discount of Php 512.75. It is 7% of the selling price. How much will a customer pay? 3. Php 826.10 was deducted on a bath mirror on sales. The invoice price was Php 3194.90. What is the discount rate? 4. Mean enterprises offered a selling price of Php 5500 and an invoice price of Php 4375 on a cloth dryer. AFN sales having the same brand of cloth dryer offers a selling price of Php 5290 with a net cost of Php 4300.Which offers a higher rate of discount. 5. After removing the 5 % discount on a branded men's leather shoe. Mr. Tomas only pays Php 1825.00. What is the original of the item?Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED:Compute for the premiums expense for the year ended December 31, 2019 and 2020.Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED: Compute for the premium liability for the year ended December 31, 2019 and 2020.