H Limited manufactures 5,000 units of perfumes per month. The cost of placing an order is GHC 100.00. The purchase price of the raw material is GHC 10.00 per Kg. The re-order period is 4 to 8 weeks. The consumption of raw materials varies from 100 kg to 450 kg per week. The average weekly consumption is 275kg. The carrying of inventory is 20% per annum. Assuming 52 weeks in a year, you are required to calculate c. Economic Order Quantity (EOQ) d. The Frequency of Orders e. Maximum Inventory Level f. Minimum Level g. Average Level
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
H Limited manufactures 5,000 units of perfumes per month. The cost of placing an order is GHC 100.00. The purchase price of the raw material is GHC 10.00 per Kg. The re-order period is 4 to 8 weeks. The consumption of raw materials varies from 100 kg to 450 kg per week. The average weekly consumption is 275kg. The carrying of inventory is 20% per annum.
Assuming 52 weeks in a year, you are required to calculate
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