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ays per year. nual consumption aterial Duo Corporation operates its factory Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is PO.25, what is the total annual carrying cost for Material Y? a. P3,750 b. P7,500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units c. 500 units d. 2,000 units

ays per year. nual consumption aterial Duo Corporation operates its factory Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is PO.25, what is the total annual carrying cost for Material Y? a. P3,750 b. P7,500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units c. 500 units d. 2,000 units

FINANCIAL ACCOUNTING
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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Pls answer the number 1 to 3 with solutions
1- 2. Duo Corporation operates its factory 300 days per year. Its annual consumption of Material Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is PO.25, what is the total annual carrying cost for Material Y? а. Р3,750 b. Р7,500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units 500 units d. 2,000 units с.
Transcribed Image Text:1- 2. Duo Corporation operates its factory 300 days per year. Its annual consumption of Material Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is PO.25, what is the total annual carrying cost for Material Y? а. Р3,750 b. Р7,500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units 500 units d. 2,000 units с.
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