Triple T Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag P2.50 Carrying cost 20% of unit cost Purchase cost/bag P1.50 Operating days per year 250 Ordering cost P5.40/order Ave. lead time on purchases 6 days Maximum lead time 13.5 days Compute the reorder point for Triple T Inc.

Triple T Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag P2.50 Carrying cost 20% of unit cost Purchase cost/bag P1.50 Operating days per year 250 Ordering cost P5.40/order Ave. lead time on purchases 6 days Maximum lead time 13.5 days Compute the reorder point for Triple T Inc.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 32P: More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next...

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More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next year. The projected income statement is as follows: Required: 1. Set up the given income statement on a spreadsheet (e.g., ExcelTM). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d). 2. Calculate the break-even units for each product for each of the preceding sales mixes.
TTT Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag=P2.50 Purchase cost/bag =P1.50Ordering cost =P5.40/orderCarrying cost=20% of unit costOperating days per year=250Ave. lead time on purchases=6 daysMaximum lead time=13.5 days Compute the reorder point for TTT Inc.
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4. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.
What is the economic-order quantity (rounded to nearest whole lens)?
Calculate the economic ordering quantity for Nashville Records Inc. , given the following information : Sales : 15,000 units per year Sales price : $10 Purchase price : $ 5 Carrying cost: 0.25 times inventory value Fixed cost per order : $ 1000
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The Best Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Ordering costs per purchase order Carrying costs per year P15,000 P300 per unit Annual demand is 20,000 packages per year. The quantity per order equals 1,000 units. What is the total annual ordering and holding costs? P450,000 P25,000 P300,000 P150,000
Demand for the Child Cycle at Best Buy is 9000 units per year. Best Buy incurs a fixed order placement, transportation, and receiving cost of OMR 48 each time an order is placed. Each cycle costs OMR 12 and the retailer has a holding cost of 20 %. Evaluate the number of cycles (EOQ) that the retailer should order and number of orders per year. a. 600 units and 15 orders b. 178.88 units and 10 orders c. 126.49 units and 15 orders d. 109.54 units and 10 orders
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Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year?-What will the average inventory be? Thank you in advance.
pioneer limited purchases a product which has a steady monthly demand of 20000 units. The product costs R100 per unit. The ordering cost is R5 per order. The holding cost is 10% of the unit purchase price. Which one of the following represents the annual economic order quantity A. 142 B. 980 C. 283 D. 490