The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The cost per unit is $ 15, order cost is $ 15 per order and carrying cost is 20%. Required: If the company uses the following lots, how much the company will save with compare to existing? Semi Annually • Monthly • Bi-Monthly What is the most economic among the above mentioned scenarios
Q: Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's…
A: At Breakeven, There is no profit no loss i.e. Total revenue = Total costAt Breakeven point,…
Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…
A: EOQ = √ 2 X Annual Demand X Odering cost / Holding cost EOQ = √ 2 X 40,000 X 10 / 30 X 15% EOQ = √…
Q: oters plans to sell a standard scooter for $90 and a chrome scooter for $120. Sammy's purchases the…
A: Sales mix is the fixed ratio of sales when an entity sells two or more products.
Q: Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units.…
A: Given: Demand = 1,000 units Ordering cost = $5 per unit Storage cost = $4 per unit
Q: An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual…
A: The total cost of inventory is affected by the cost of the items purchased, ordering cost, and…
Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 uni per…
A: Solution 1- EOQ =2×A×O/C A= ANNUAL CONSUMPTION O= ORDERING COST C=CARRYING COST/STORAGE COST…
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: Calculate the cost of the motors, including shipping charges, for each category. If you usually…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…
A: NOTE- Since you have posted a question with multiple sub-parts, we will solve the sub-parts asked by…
Q: 1. A shop sells animal dolls at a very steady pace of 10 per day, 310 days per year. The wholesale…
A: It is specifically asked the solution in Handwritten notes hence we will give the solution…
Q: If the company has a target profit of $15,000, how many units must be sold
A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…
Q: How much is the annual requirement?
A: Given: Semiannual requirement 39,000 units Unit price of P4 per unit. Carrying cost at 15% of the…
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: A company requires 8,000 units of material A per month. The cost per order is $950 and the holding…
A: Total cost of buying the material includes holding cost + ordering cost
Q: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold…
A: Work in process (WIP), work in advance (WIP), merchandise in preparation, or in-process stock are a…
Q: The Willow Furniture Company produces tables. The fixed monthly cost of production is $8,000, and…
A: Fixed monthly cost=$8000Variable cost per table=$65Sales volume=300Selling price per piece=$180
Q: A firm uses 2,400 units of a product per year on a continuous basis. The product carrying costs are…
A: Economic Order Quantity (EOQ) was related with inventory management and it helps to order the…
Q: Fruit Sushi Corporation sells delicious fruit sushi at a wholesale price of $4.00 per unit. The…
A: Answer) The total fixed cost, i.e., $ 7,500 is already charged from existing number of units sold.…
Q: Olsen Auto Supply typically earns a contribution marginratio of 40 percent. The store manager…
A:
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: 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: The Valdez Mug Company manufactures plastic mugs that sell to wholesalers for P4.00 each. Variable…
A: Contribution margin per unit = Sales price - Total variable cost per unit = P4 - P2.2 = P1.80 per…
Q: A store sells a product that has the annual demand of 16,156 units. It purchases the product from…
A: At EOQ, total ordering cost and carrying cost is minimum. Total ordering and carrying cost can be…
Q: Chen's Chemicals, a firm that produces industrial chemicals, uses 26,000 gallons of a particular…
A:
Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: The Willow Furniture Company produces tables. The fixed monthly cost of production is$8,000, and the…
A: Contribution margin per unit = Sales price per unit - Variable cost per unit = $180 - $65 = $115 per…
Q: A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost…
A: EOQ (Economic Order Quantity):-EOQ is the minimum order quantity that one should order to minimize…
Q: Marsh Motors sells 5,000 motors a year for $30 apiece. Variable costs are $8 per unit, and total…
A: The break even sales units are the sales where business earns no profit no loss during the year.
Q: 1. Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
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: Dona Corporation manufactures and sells T-shirts imprinted with college name and slogans. Last year,…
A: Net income refers to the amount of income computed after deducting sales from cost of goods sold ,…
Q: Bando Corp. sells a single part for a price of $40 per unit. The variable costs of the part are $15…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: A company estimates that it can sell 4,000 units each month of its product if it prices each unit at…
A: When 4000 units are sold: Sale Value = 4000*80 = $3,20,000 Total Cost = Fixed Cost + Unit Production…
Q: 32. Determine the monthly breakeven sales in dollars before adding nachos. 33. Determine the monthly…
A: Aydesurv Company currently sells hot dogs. During a typical month, the stand reports a profit of…
Q: XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and…
A: Annual demand: 325 kgs. x 12 months = 3,900 kgs. Cost per unit: OMR 2.00 Ordering cost per order:…
Q: An auto parts supplier sells batteries to car dealers and auto mechanics. The annual demand is…
A: Given:
Q: Jasmine Inc. makes a single product that it sells for $25 each. Variable costs are $13 per unit and…
A: Contribution margin is sales revenue over and above it's variable costs. In order to earn target…
Q: To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional…
A: Introduction: Average costs: The average total technique sets the value of inventory items by…
Q: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of…
A: I am answering the first three sub-parts of the question as per bartleby guidelines. Please…
Q: TS Co has daily demand for ball bearings of 40 a day for each of the 250 working days (50 weeks) of…
A: We have the following information: TS Co has daily demand for ball bearings of 40 a day for each of…
Q: A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year.…
A: Hi student Since there are multiple subparts,we will answer only first three subparts. If you want…
Q: One of the bulk raw beverages, which Blanchard buys, is gin. Assume that the cost of purchasing…
A: The question is related to Inventory Management. The Economic Order Quantity is that level of…
Q: Wilson Publishing Company produces books for the retail market. Demand for a current book is…
A: Daily demand (d) Annual demand /no.of working days 7400/250 29.6 copies Daily production (p) Annual…
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…
Step by step
Solved in 2 steps
- What 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 yearA Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year. These mobiles are purchased for SR 150.00 each, and the lead time is two days. The holding cost per mobile per year is 6% of the unit cost and the ordering cost per order is SR 37.50. There are 250 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?One of the bulk raw beverages, which Blanchard buys, is gin. Assume that the cost of purchasing enough raw gin for one case is $100. Each time they place an order their cost for processing the order is $20. The annual holding cost is 33% of item cost and demand for gin is 2500 cases per year. Calculate the EOQ for this product. If the lead-time is one day, what is the reorder point ROP? What is the annual total cost of this strategy? What is the average inventory? What is the inventory turnover? Please do fast ASAP fast
- Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units. If it costs $5 every time an order is placed for more units and the storage cost is $4 per unit per year, a. What quantity should be ordered each time? b. What is the total ordering cost for a year? c. What is the total storage cost for a year?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?A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.
- 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve cost of RO 1.50 per unit when bought in large quantities, and the carrying cost is estimated to be 20% of average inventory investment on an annual basis. The cost to place an order and process the delivery is RO18. It takes 45 days to receive delivery from the date of an order and a safety stock of 3250 vales is desired. You are required to determine. a. The most economical order quantity and frequency of orders. b. The most economical order quantity if the valves cost is RO 4.50 each instead of RO 1.50 eachThe ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. Suppose that ABC would like to realize a monthly profit of $50,000. How many units must they sell each month to realize this profit?Warner clothing is considering the introudciton fo a new baseball cap for sales by local vendors. The comapny has collected the following price and cost characteristics. A. What number must Warner sell per month to break even? B. What number must Warner sell per month to make an operating profit of $30,000?
- Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $60 per unit and has a CM ratio of 40%. The company’s fixed expenses are $540,000 per year. The company plans to sell 26,000 knapsacks this year. Required: What are the variable expenses per unit? Use the equation method for the following: What is the break-even point in units and in sales dollars? What sales level in units and in sales dollars is required to earn an annual profit of $108,000? What sales level in units is required to earn an annual after-tax profit of $108,000 if the tax rate is 20%? Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company’s new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. How many units must ABC sell each month to break even?Vallie Enterprise sells a product that costs $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. i)What is the cost-minimizing solution for this product each year?