Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 10%. a. 310 units b. 283 units c. 245 units d. 219 units

Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 10%. a. 310 units b. 283 units c. 245 units d. 219 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Anticipated unit sales are January, 5 DOO; February, 4 D00; and March 8 DOO. Finished goods are…

A: Cost Of Production: In the manufacturing unit, Cost Of Production includes particularly the raw…

Q: QUESTION 3 Aldarees Company sells a product for SR 1,000 per unit. Variable costs are SR 600 per…

A: Contribution margin is sales revenue over and above its variable costs. Sales units needed to earn…

Q: Calculate break-even sales (in units) when fixed cost is $216,000, unit selling price is $120, and…

A: The objective of this question is to calculate the break-even point in units. The break-even point…

Q: Total $ 260,400 159,600 Per Unit $ 31.00 19.00 Sales (8,400 units) Variable expenses Contribution…

A: Formula: Net income = Revenues - Expenses.

Q: Hudson Company reports the following contribution margin income statement. HUDSON COMPANY…

A: Cost volume profit analysis is the technique used by management for decision making. The methods…

Q: Choice Chioren grows and processes chioens. Each chicken is disassembled into five main parts.…

A: The methods of joint cost allocation in cost accounting are the split-off method and Physical…

Q: If economic order quantity is 1,500 units and consumption in units for one year are 15,000 units,…

A: Formula: Number of orders in a year = consumption in units for one year / EOQ

Q: Contribution margin Harry Company sells 38,000 units at $11 per unit. Variable costs are $7.59 per…

A: Contribution margin :— It is the difference between sales and variable cost. Operating income :—…

Q: 1. Assume the sales volume increases by 4,896 units: a. What is the revised net operating income? b.…

A: Profitability statement can be presented as below - ParticularsAmountSalesxxx(-) Variable…

Q: From the following calculate economic order quantity Monthly usage 250 units. Cost of placing…

A: SOLUTION- FORMULA- EOQ= 2*A*O / C A= ANNUAL DEMAND = 250*12 = 3000 O= ORDER COST…

Q: Q1// A company estimates that it will sell 12000 units of its product for the forthcoming year. the…

A: Inventory: It is the stock of goods that, in all form, the company holds at a point of time. The…

Q: Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit.…

A: Economic order quantity is that order quantity at which inventory carrying costs and ordering costs…

Q: Company B furnished you with the following information with respect to material OXO: Annual…

A: Economic order quantity indicates the number of units to be ordered, So that company can minimize…

Q: Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO c.…

A: First in First Out (FIFO): Under this method, closing inventory is valued assuming that the old…

Q: HWGMOF373 Corp has the following data: Unit selling price Unit variable expenses (ID#72095) Total…

A: The margin of safety is the excess value of sales over the break-even sales. It can be calculated by…

Q: Selling price per unit: $15 Variable cost per unit: $10 Fixed MOH for each year: $800…

A: Under the absorption costing, Fixed MOH is considered as a Product Cost and therefore, the cost of…

Q: Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed…

A: Break even point means a situation where there is neither profit nor loss.

Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Q: Eric Clothing Limited’s annual demand for materials X is 50 000 units, and the ordering cost is P10…

A: Economic order quantity is the number of units at which both the ordering cost and holding or…

Q: A company uses 2625 units of a product per quater. The ordering cost for the same is RO 250 and the…

A: Economic order quantity is that quantity which should be ordered to have minimum inventory cost in…

Q: Problem 4 ECONOMIC ORDER QUANTITY. Luster Corporation presents the following data: Usage is 400…

A: Economic order quantity means the quantity to be ordered so that total inventory cost (purchase cost…

Q: PLEASE DO PART B Harper Enterprises has an average annual demand of 45,000 units for its main…

A: Harper Enterprises has an average annual demand of 45,000 units for its main product line. The cost…

Q: The economic production quantity (EPQ), produced by Al-Anaaqa Company, is 2200 units. The set up…

A: Total inventory cost is computed by adding the inventory holding cost and production set up cost.

Q: Avia Company sells a product for $150 per unit. Variable costs are $110 per unit, September. The…

A: The contribution Margin is calculated as difference between sales and variable cost. The net income…

Q: A. Your firm uses a fixed order quantity system and operates 52 weeks per year. One of the items…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Selling price per unit Variable expenses per unit Fixed expense per month $ 185.00 $ 94.00 $437,240

A: Formula for calculation: Unit sales to attain a target profit = ( Fixed cost + target profit ) /…

Q: Sales (8,400 units) Variable expenses Contribution margin $ 260,400 159,600 $ 31.00 19.00 $ 12.00…

A: Variable expense and no of units sold are interrelated. Change in the sales unit leads to change in…

Q: Q4. Annual cost of carrying a unit Tk 15 And ordering costs per order Tk 500 Time Required for…

A: The details regarding inventory are given Required 1. Re order Level 2. Maximum Stock Level 3.…

Q: Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales…

A: Contribution per unit = Sale Price per unit (-) Variable cost per unitBreakeven point: The point at…

Q: HWGMOF373 Corp has the following data: Unit selling price Unit variable expenses (ID#15257) Total…

A: The margin of safety is the excess value of sales over the break-even sales. It can be calculated by…

Q: Sales volume - 60,000 units Sales Price - $25/unit Production EI 10,000 units Production BI…

A: Budgets are prepared by the management to estimate the total sales, production required or material…

Q: The carrying cost curve and ordering cost curve of Bulldogs Inc.'s inventory intersect at 3,50…

A: the concept of economic order quantity for me is applicable where there is ideal order quantity. is…

Q: Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed…

A: Contribution margin ratio is the percentage of sales that is available to cover profits and fixed…

Q: 5. A company has £8.00 per unit in variable production cost and £3.00 per unit in variable selling…

A: While using variable costing only variable cost is taken. Formula for the same = total variable cost…

Q: a. Find the reorder point necessary to provide a 98 percent service probability.

A: Following formula can be used to calculate the re-order point:

Q: Selling price per unit Variable expenses per unit Fixed expense per month $ 185.00 $ 94.00 $437,240

A: Formula used : Unit sales to attain a target profit = ( Fixed cost + Target profit ) / Unit…

Q: sales per unit $15 $100 variable expenses per unit $9 $20…

A: Contribution margin = sales - variable cost

Q: Selling price per unit: $15 Variable cost per unit: $10 Fixed MOH for each year: $800…

A: The operating income is calculated as difference between contribution margin and fixed costs.

Q: Sparkle Jewelry sells 600 units resulting in $75,000 of sales revenue, $32,000 of variable costs,…

A: Breakeven point is the number of units sold where the company has no profits/no losses made. It is…

Q: What is National's estimated annual usage in units? * Format: 1,111,111 National Co. has determined…

A: Order size (Q) = 10,000 units Total order cost in year (TC) = P20,000 Cost per order (O) = P100

Q: Sparkle Jewelry sells 800 units resulting in $85,000 of sales revenue, $32,000 of variable costs.…

A: Operating income is the amount of money earned by an entity from its operations. It is computed by…

Q: components X are use Normal usage = 100 Minimum usage = 50 Maximum usage = 15 Re- order Quantity X:4…

A: Given information of Component X Normal Usage = 100 units per week Minimum Usage = 50 unit per week…

Question

8- Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 10%. a. 310 units b. 283 units c. 245 units d. 219 units

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Pls answers number 8 to 9 with solutions
Selling price per unit $ 100Variable expenses per unit $ 40Fixed expenses per month $ 60,000 Operating income at a volume of 4,000 units per month is: a. $240,000 b. $200,000 c. $180,000 d. $120,000
Computing Average Unit Costs The total monthly operating costs of Chili To Go are:$12,000 + $0.50X where X = servings of chili Determine the average cost per serving at each of the following monthly volumes: 100; 1,000; 5,000; and 10,000. Round answers to one decimal place. Volume Average Unit Cost 100 1,000 5,000 10,000 Determine the monthly volume at which the average cost per serving is $0.70.
Problem: AAA Company produces and sells Product X: Annual Demand 24,000 units Annual cost to held one unit of inventory P11.52 Order Cost P38.40 Beg. Inventory P 0 a. What is the Economic Order Quantity? b. How much is the total Order Costs? c. How much is the total Carrying Costs?
PROVIDE Answer with calculation
Answer Problem #3 : items 9 & 10
ssssss
Activities/Assessments: Activity 9 Solve the following EOQ model problems: 1. Each year, Y Company purchases 20,000 units of an item that costs P 640 per unit. The cost of placing an order is P 480, and the cost to hold the item in inventory for one year is P 150. a. Determine the EOQ. b. What is the average inventory level, assuming that the minimum inventory level is zero? c. Determine the total annual ordering cost and the total annual holding cost for the item if the EOQ is used. 2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week. a. Find the EOQ. b. Find the reorder point. c. What would be your ordering policy for this item? d. Find the total annual cost of ordering and carrying silicon chips. 3. A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order…
Selling price per unit $ 100Variable expenses per unit $ 40Fixed expenses per month $ 60,000 The break-even point volume of units is: a. 0 b. 360 c. 720 d. 1000
Production and saies estimates for March for the Robin Co. are as follows: Estimated inventory (units), March 1 17,700 Desired inventory (unit), March 31 19,100 Expected sales volume (units): Area M 6,500 Area L 8,300 Area O 7,900 Unit sales price $13 The number of units expected to be manufactured in March is Ob. 41,800 OC 22.700 Od. 24,100
Case 2Al Ahlia detergent company purchased 4500 units of raw material for annual usage. Thepurchase price per unit RO 100 and annual carrying cost is 15%. The cost of placing an order isRO. 1200. Calculate a. Economic Order Quantityb. No of orders per yearc. Economic Order Frequency