Sunshine Pharmacy produces Health up tonic using two herbs X and Y. Each litre of tonic requires 40 centilitres of X and 60 centilitres of Y. Weekly production varies from 350 litres to 450 litres, averaging 400 litres. Delivery period for both the herbs is 1 to 3 weeks. The economic order quantity for X is 600 litres and for Y is 100 litres. Calculate: Reorder level of X, (i) (ii) Maximum level of X, and (ii) Minimum level of Y.

Sunshine Pharmacy produces Health up tonic using two herbs X and Y. Each litre of tonic requires 40 centilitres of X and 60 centilitres of Y. Weekly production varies from 350 litres to 450 litres, averaging 400 litres. Delivery period for both the herbs is 1 to 3 weeks. The economic order quantity for X is 600 litres and for Y is 100 litres. Calculate: Reorder level of X, (i) (ii) Maximum level of X, and (ii) Minimum level of Y.

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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