A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5400 boxes of apple. It costs OR 10 to makeand receive an order and holding cost is OR 3.5 per box per year. The prices per unit depend on quantities purchased (in baxes) such that the orderquantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 ROWhat is the Economic Order Quantity (EOQ) while not considering the discount? Round-up to the nearest integerO a.None is correctO b. 176166O d.186O e.180

Solution:- calculation of EOQ as follows under:-

A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5400 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices per unit depend on quantities purchased (in boxes) such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO What is the Economic Order Quantity (EOQ) while not considering the discount? Round-up to the nearest integer O a. None is correct Ob. 176 O c. 166 O d. 186 O e. 180

A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5400 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices per unit depend on quantities purchased (in boxes) such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO What is the Economic Order Quantity (EOQ) while not considering the discount? Round-up to the nearest integer O a. None is correct Ob. 176 O c. 166 O d. 186 O e. 180

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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