11. The following are annual cost of Peter Corp. relating to Material A which required 40,000 units per year:Unit CostInsurance costP20Storage costFreight in323610Order costInterest that could have been earned on alternative investment of funds P320,000What is the annual carrying cost per unit?12. Senen has an order point at 1,400 units, usage during the normal lead time of 600, and EOQ 4,000 units.What would be its maximum inventory, assuming lead time and usage is normal.

SOLUTION- CARRYING COST ALSO KNOWN AS HOLDING COST . THIS IS THE COST THAT A BUSINESS PAYS FOR…

Answered: 11. The following are annual cost of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit. A. P20,000 B. P40,000 C. (P20,000) D. P80,000
X Company had the following information available for 2020: Number of units sold 32,000 units Selling price per unit $1,250 Variable cost per unit S750 Total fixed costs $14,000,000 Based on the above, the unit contribution margin is: * 40% $500 $16,000,000 O None of the above
: Below is information about the two trucks that will be taken to the Arel Flour Factory. Their economic life is equal , If the cost of capital is 20%, which alternative would you prefer?
If Cape Cod Railway’s costs total $50,000 per month, the variable passengers is $10 , and tickets sell for $50 , what is the contribution margin per unit and contribution margin ratio? A. $40 per passenger; 20%B. $10 per passenger; 80% C. $10 per passenger; 20% D. $40 per passenger; 80%
The Audino Division of Berg Company makes and sells only one product. Annual data on the Audino Division's single product follow: Unit selling price, ₱250 Unit variable cost, ₱200 Total fixed costs, ₱975,000 Average operating assets, ₱1,255,000 Minimum required rate of return, 15% If Audino sells 25,000 units per year, the residual income would be ₱______________.
e. 5,000 XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost: $10, and Sales (Units): 9,000. Anticipated Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one: O a. No, because sales will drop by 3,000 units. Ob. It is impossible to judge because additional information is needed. Oc. No, because the company will be worse off by $4,000. O d. Yes, the company will be better off by $6,000. Oe. No, because the company will be worse off by $22000. Next page
At present the manufacturing plant of laksiri Ltd is operating at 50% of its capacity. The following details are related to plant. Rs. Variable cost (Per Unit) 12 Selling Price(Per Unit) 14 Total Fixed cost 45,000 Present Production 20000 units If an exporter offers to bye 10,000 units per month at the rate of Rs.13 per unit Should Laksiry Ltd. accept this offer? Confirm your answer with requird calculations.
Muscat Pharmacy had sales of RO 1,000,000 (50,0000 units) for 2019. The variable expenses were RO 600,000 and fixed expenses were RO 300,000. What is the contribution margin per unit? Select one: a. None of the answers are correct O b. 400,000 O c. 4 O d. 40% O e. 8
The following information relates to Al Samah Company for April 2021: Sales $ 20,000 Less: Variable costs 6,000 Fixed costs 10,000 Total costs 16,000 Profit $ 4,000 What is May 2021 profit if sales are estimated to double? O a. $ 14,000 b. $ 24,000 O c. $ 8,000 O d. $ 18,000
Answer the following questions using the information below: Company A sells a single product. 1,500 units were sold resulting in $30,000 of sales revenue; $21,000 of variable costs, and $2,400 of fixed costs. If sales increase by $20,000, operating Income will increase BY: ⒸA$11,400 OB. None of them OC. $6,000 OD. $12,000
If this year Eloise Ltd. had sales of $750,000, fixed costs of $150,000, and variable costs of $350,000, what is the margin of safety in dollars?(round numbers within the calculations to 2 decimal places and choose the closest whole number) $400,000 $466,981 $450,000 $425,650

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