Patriot Oman predicts that it will use 360,000 kgs of materials during the year. The material is expected to cost OMR 5 per kg. Patriot Oman anticipates that it will cost OMR 72 to place each order. The annual carrying cost is OMR 4 per kg. Determine the Economic ordering quantity.
Q: A moped manufacturing company needs 100,000 units of moped tires for its production per year.The…
A: Economic order quantity was an inventory management costing principle used to find out required…
Q: Oster Company Ltd. manufactures dusk to dawn lamps. The following are the details of their operation…
A: Economic order quantity (EOQ) is a calculation used by firms to calculate their best order size,…
Q: Neptune Company has developed a small inflatable toy that it is anxious to introduce to its…
A: break-even analysis is the the target profit analysis. Under this approach we compute the…
Q: Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units.…
A: Given: Demand = 1,000 units Ordering cost = $5 per unit Storage cost = $4 per unit
Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 uni per…
A: Solution 1- EOQ =2×A×O/C A= ANNUAL CONSUMPTION O= ORDERING COST C=CARRYING COST/STORAGE COST…
Q: Wesley Utility Company uses 2,500 units per year which it stores at $0.50 per unit per annum. The…
A: EOQ = Economic order quantity (EOQ) is a calculation on which companies perform that represents…
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A:
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: EOQ = Square root of [(2*Annual demand*Ordering cost)/(Price per unit * Carrying cost%)] EOQ =…
Q: ETS manufactures a component for its computer products. The annual demand for this component is 2500…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Gilberto Company currently manufactures 78,000 units per year of one of its crucial parts. Variable…
A: Given: Manufacture units = 78000 per year Variable cost = $2.60 per unit Fixed cost (making this…
Q: ACE processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: Economic Order Quantity is an inventory management technique where it helps to order the required…
Q: Neptune Company has developed a small Inflatable toy that it is anxlous to Introduce to Its…
A: Formulas:
Q: Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost…
A: EOQ is Economic Order Quantity. This is that ideal quantity at which ordering and carrying costs…
Q: A company requires 8,000 units of material A per month. The cost per order is $950 and the holding…
A: Total cost of buying the material includes holding cost + ordering cost
Q: related to making this part are $89,000 per year, and allocated fixed costs are $76,000 per year.…
A: Incremental analysis is a tool used in managerial accounting when choosing between alternative…
Q: H&M chief demand planner has estimated that 9250,000 units of clothing sold in 2021.H&M cost of…
A: Economic Order Quantity - EOQ helps the company ensure the quantity that needs to order quantity…
Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…
A:
Q: A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year…
A: Economic order quantity in costing States the order quantity at which the ordering and carrying cost…
Q: Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make…
A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…
Q: The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in…
A: As you have asked multiple sub-parts we can solve only first three sub parts for you for rest of the…
Q: Anticipated sales for Safety Grip Company were 32,000 passenger car tires and 10,000 truck tires.…
A: Production Budget: This budget shows the quantities of units that a company should produce to meet…
Q: SamaCell has a demand of 2,000 cells per year. The cost of each unit is $80, and the inventory…
A: Economic Order Quantity (EOQ) refers to the concept of estimating the ideal quantity that a business…
Q: Lila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who…
A: Economic Order Quantity(EOQ) shows quantity of goods at which ordering cost and holding/carrying…
Q: A manufacturing company orders 24,000 units of concrete blocks semi-annually at a price of Php20.00…
A: Optimal order quantity is that order quantity or that number of units that must be ordered in order…
Q: Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture…
A: Total cost of goods sold = Cost of goods sold per unit * Number of units produced Gross margin =…
Q: Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the…
A: The question is based on the concept of Cost Accounting.
Q: Bonita, Inc. is a company that manufactures and sells a single product. Unit sales for each of the…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: nt to be $6,000 in August when 8,600 units are expected to be produced. If rent is a fixed cost, and…
A: Fixed costs : fixed costs remain constant in a total amount over a specific range of activity these…
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Semi annual requirement = 39000 Units Annual requirement (A) = 39000*2 = 78000 Units Price per unit…
Q: American pany estimates that 60,000 special zippers will used in the manufacture of men's jackets…
A: The question is based on the concept of Financial Management.
Q: XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and…
A: Annual demand: 325 kgs. x 12 months = 3,900 kgs. Cost per unit: OMR 2.00 Ordering cost per order:…
Q: The company expects that it will work for 7,000 machine-hours in January 2020. Using the high-low…
A: High-low method is the method which is used by the company to measure the fixed assets which are…
Q: BIG Pharmaceuticals Ltd. has invested $330,000 to date in developing a new type of insect repellent.…
A: Net present value is the sum of cash inflows discounted to present value by the cost of capital. IRR…
Q: Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the…
A: Pounds per sack = 100 lb Week by week interest = 100,000 lb d = Wkly intt for sacks =…
Q: eptune Company has developed a small inflatable toy that it is anxious to introduce to its…
A: Break-even Point is a point where revenue is able to cover all fixed as well as variable expenses of…
Q: tamarisk, Inc. is a company that manufactures and sells a single product. Unit sales for each of the…
A: Solution Budget is the estimation of revenue and expenses over a specified future period of time.
Q: Clothes, Inc., has an average annual demand for red, medium polo shirts of 25,000 units. The cost of…
A: Cost accounting is one of the important branch of accounting. Under this branch, all type of costs…
Q: Salam's company expects its production of pipes will require 600,000 tons of aluminum over its…
A: Economic order quantity is referred to as that level of the inventory which would generate the least…
Q: A company needs a specific type of stored materials, with a quantity of 150,000 pieces, the cost of…
A: This question deals with the calculation of EOQ, number of order and when to supply each order.…
Q: How much is the carrying cost per unit? *
A: Carrying cost is such cost which a company bears as a storage cost per unit.
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Annual Requirement of units = Semi annual requirement x 2 Given that: Semi annual requirement =…
Q: Sawtooth Industries uses an economic order quantity (EOQ) model to manage its inventory investment.…
A: Economic order quantity represents the number of units that should be ordered by the entity in each…
Q: The XYZ company has traditionally ordered ink refills 80 units at a time. This company estimates…
A: Push systems - These inventory management systems stock and control inventory based on the forecasts…
Q: Neptune Company has developed a small inflatable toy that it is anxious to introduce to its…
A: Break-even point = Fixed cost / Contribution per unit (Sale price - Unit Variable cost) Weighted…
Q: Hoboken Industries currently manufactures 30,000 units of part MR24 each month for use in production…
A: Managerial accounting: Managerial accounting is more focused towards analyzing information and…
Q: Demand for a product is 12,000 units per year. Every time an order is made, the company must pay…
A: Cost of inventory is the total cost of ordering and carrying the inventory.
Q: Gilberto Company currently manufactures 66,000 units per year of one of its crucial parts. Variable…
A: Incremental cost: Incremental cost is the analysis of the costs in different avenues, which could be…
Q: BIG Pharmaceuticals Ltd. has invested $330,000 to date in developing a new type of insect repellent.…
A:
Step by step
Solved in 3 steps
- DETERMINING DAILY COST OF HOLDING A shipment of new connectors for semiconductors needs to go from San Jose to Singapore for assembly.The value of the connectors is $1,750, and holding cost is 40% per year. One airfreight carrier can ship theconnectors 1 day faster than its competitor, at an extra cost of $20.00. Which carrier should be selected?APPROACH c First we determine the daily holding cost and then compare the daily holding cost withthe cost of faster shipment.Aeon Laketown predicts that 10,000 units of materials will be used duringthe year. The expected daily usage is 40 units. The expected lead time is 6days, and there is a safety stock of 300 units. Aeon expects that the cost ofmaterials will be P480 per unit. It anticipates that it will cost P200 to placeeach order. The annual carrying cost is P1.00 per unit.Required:a. Calculate the order point.b. Calculate the economic order quantity.c. Calculate the total ordering and carrying costs at EOQ point.The Fence Company is setting up a new production line to produce top rails. The relevant data for two alternatives are shown below. Solve, a. Based on MARR of 8%, determine the annual rate of production for which the alternatives are equally economical. b. If it is estimated that production will be 300 top rails per year, which alternative is preferred and what will be the total annual cost?
- ETS manufactures a component for its computer products. The annual demand for thiscomponent is 2500 units. The annual cost of maintaining inventory is10% per unit and the cost of preparing an order and setting up productionfor the order is $ 50.The machine used to make this part has a production rate of 10,000units per year and the cost is $ 22 per unit.a. Find the EPQ(Economic Production Quantity)A. How long does it take to produce the batch?B. How many batches will be produced per year?C. What is the maximum inventory level?D. What is the total cost per year?E. A supplier offers to sell a similar component for $ 25 per unit with a charge$ 5 per service per order. Should the company accept the offer?F. Find the average inventory level for each situationNestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What is the optimal total cycle time including the production time in year?A process for producing the mosquito repellant Deet has an initial investment of $200,000 with annual costs of $50,000. Income is expected to be $90,000 per year. (a) What is the payback period at i = 0% per year? A i = 12% per year? (Note: Round your answers to the nearest integer.) (b) What is the annual breakeven production quantity for both payback periods (determined above) if net profit, that is, income minus cost, is $10 per gallon?
- A factory to manufacture automobile tires is being considered to be setup in Kuwait. The organization is expecting to manufacture 12044 tires annually. After doing some planning, the manger was able to estimate the following fixed and variable cost in KWD for the three locations under consideration: Location C Fixed Cost 289161 389161 239161 per year Variable 45 30 65 Cost per Unit What will be the total cost for the best location selected based on these costs. [round off to the closest whole number]A process for producing the mosquito repellant Deet has an initial investment of $210,000 with annual costs of $52,000. Income is expected to be $90,000 per year. What is the payback period at i = 0% per year? At i = 12% per year?Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Assume that demand is uniform throughout the year and known with certainty so there is no need for safety stocks. The purchase-order lead time is half a month. Calculate Sk8’s reorder point for the wheel bearing.
- If the sales forecast estimates that 50,000 units of product will be sold during the following year, should the factory plan on manufacturing 50,000 units in the coming year? Explain.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.Calculate Sk8’s annual relevant ordering costs for the EOQ .
