Seah Corporation presents the following data: Usage is 400 units per month, cost per order is P20, and carrying cost per unit is P6. Given these data, answer the following questions: (A) What is the economic order quantity? (B) How many orders are required each month?
Q: Abner Company has an annual demand of 13,000 units of Material A. The cost per unit is P14. The…
A: As per the guidelines, only three subparts are allowed to be answered. Please resubmit the question.…
Q: To follow is information about the units produced and total manufacturing costs for Pine Enterprises…
A: Formula: Total cost = Variable cost + fixed cost Sum of both variable and fixed cost derives the…
Q: Panther Tyres Inc., produces 50,000 units each day, and the average number of units in work in…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Zigwell Manufacturing spent an average of $18 per order to issue 30,000 purchase orders last year.…
A: Formula for total purchasing cost Average cost per order × Number of orders
Q: For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent…
A: Economic order quantity is that quantity of goods at which total inventory costs are minimum. It…
Q: Rainbow Inc's products are given below. If the company's total labor capacity is 3200 hours/week,…
A: In case of constraint capacity of any factor of production, the production plan is determined by…
Q: Poole Corporation has collected the following information after its first year of sales. Net sales…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales −…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Hyzel Manufacturing Company has an annual average requirement of 320,000 units. It has been…
A: Hi student Since there are multiple subparts, we will answer only first three subparts
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: Economic order quantity indicates the level of units that should be ordered to get the least cost of…
Q: Blane Company has the following data: Total sales $800,000 Total variable costs $300,000 Fixed costs…
A: Selling price per unit = Total sales / Number of units sold Variable cost per unit = Total Variable…
Q: A manufacturing company placed an order of 24,000 units semiannually at a price of $20 per unit. Its…
A:
Q: Sandhill Corporation has collected the following information after its first year of sales. Sales…
A: (1) Contribution margin for current year [Refer working note 1] $294000…
Q: Aeon Laketown predicts that 10,000 units of materials will be used during the year. The expected…
A: The question requires calculation of order point, EOQ and total ordering and carrying costs at EOQ…
Q: In the month of September, Matiock Industries sold 800 units of product. The average sales price was…
A: The contribution margin is calculated as difference between sales and variable costs.
Q: The Waldron Company produces a single product for sale. Based on current accounting records, the…
A:
Q: Evansville Company had the following transactions for the month. Number Cost of Units per Unit…
A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…
Q: For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200…
A: Economic Order Quantity refers to the number of units the company should add to the inventory and…
Q: The following information relates to a company . The fixed cost per order is ksh 1,500 The…
A: SOLUTION- ECONOMIC ORDER QUANTITY = 2*A*O / C A= ANNUAL DEMAND O= ORDERING COST C= CARRYING COST…
Q: if the holding cost of an item is $0.15 per unit per day, the ordering cost is $200 per order, the…
A: Solution- Annual demand= 80 units * 365=29200 Order cost =200 per…
Q: The following cost formula for total purchasing cost in a factory was developed using monthly data.…
A: Correct Option- The correct option is D. $835,000. The total cost of 8,000 predicted orders will…
Q: Units Produced Total Cost 1,600 $66,000 1,300 $57,000…
A: High low method - it is a method in which we separate out Fixed cost and the variable cost with the…
Q: A company has estimated its economic order quantity for Part A at 3,000 units for the coming year.…
A: Economic order quantity = 2 * Annual usage * cost per order / Carrying cost per unit
Q: Alltech Inc. has collected the following data. (There are no beginning inventories.) 510 units Units…
A: Absorption costing method of preparing income statement includes the portion of variable and fixed…
Q: Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO…
A: EOQ is the ideal quantity company should order to minimize the cost of holding charges &…
Q: Yanks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are$80 per order, and…
A: Economic Order Quantity:- EOQ is the minimum quantity that one should order to minimize the ordering…
Q: Noriel Company has collected the following information over the last six months: Month Units…
A: high-low method is a way of attempting to separate out fixed and variable costs from mixed costs…
Q: The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per…
A: Economic Order Quantity: The economic order quantity is the ordering level at which the storage cost…
Q: Oster Company Ltd. manufactures dusk to dawn lamps. The following are the details of their operation…
A: In the context of the given question, we are required to compute the tradeoffs in costs involved in…
Q: Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order,…
A: Economic Order Quantity refers to optimal level of inventory being purchased by an entity while…
Q: The following monthly data are available for Sunland Company. which produces only one product:…
A: Introduction;- Calculation of Break-even sales as follows under:- Break-even sales =Fixed cost /…
Q: The annual demand for a certain product is 11,340 units. The company informs you that every time an…
A: The profit of the company will be the main aim of running the operations of the company. The income…
Q: Tony uses EOQ logic to determine the order quantity for its various components and is planning its…
A: Economic order quantity is that quantity which should be purchased by every entity in its order so…
Q: A company uses components at the rate of 15,000 units per year, which are bought in at a cost of…
A: Holding cost:-This cost incurred in carrying the inventory in-store, therefore it is also known as…
Q: The following information is available for a company's cost of sales over the last five months.…
A: Cost is referred as the essential part of the business or a company which looks after the costs such…
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: Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…
A: Hi student: Since there are multiple questions, we will answer only first question. If you want…
Q: requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15%…
A: Economic order quantity is most optimal level of quantity that is required such that it minimises…
Q: The following monthly data are available for National Co., which produces only one product: Selling…
A: Contribution margin per unit = Selling price per unit - Unit variable expenses = P42 - P14 = P28
Q: Luster Corporation presents the following data: Usage is 400 units per month, cost per order is P20,…
A: Monthly requirement (M) = 400 Units Ordering cost (O) = P 20 Carrying cost per unit (C) = P 6
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Calculate the total contribution margin. What is the operating income earned in October?
A: "Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…
Q: ) Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: (a) Correct answer icon Your answer is correct. Compute (1) the contribution margin for the…
A: Break-even point refers to a point at which the company earns neither profit nor deficit. If the…
Seah Corporation presents the following data: Usage is 400 units per month, cost per order is P20, and carrying cost per unit is P6.
Given these data, answer the following questions:
(A) What is the economic order quantity?
(B) How many orders are required each month?
Step by step
Solved in 2 steps
- The activity driver for the shipping activity of Withstand Inc. is the number of orders shipped. Product A uses 30 orders, and Product B uses 70 orders. Calculate the consumption ratios for each product. (Note: Round your answers to two decimal places.) a.0.30; 0.70 b.0.25; 0.75 c.0.20; 0.80 d.0.65; 0.35If D = 8,400 per month, S = $43 per order, and H = $1.50 per unit per month, a) What is the economic order quantity? The EOQ is 694 units (round your response to the nearest whole number). b) How does your answer change if the holding cost doubles? The EOQ is whole number). units (round your response to the nearestIf D = 8,400 per month, S = $43 per order, and H = $1.50 per unit per month, a) What is the economic order quantity? The EOQ is units (round your response to the nearest whole number).
- A company has a linear total cost function and has determined that over the next three months it can produce12,000 units at a total cost of $224; 000. This same manufacturer can produce 18,000 units at a total cost of$296; 000. The selling price per unit is $13.25.i. Determine the revenue, cost and prot functions using q for number of units.ii. What is the xed cost ?iii. What is the marginal cost ?iv. Find the break-even quantity.v. What is the break-even dollar volume of sale ?vi. What will prot be if the company shuts down operation?vii. If, because of a strike, the company will be able to produce only 10,000 units, should it shut down for the nextthree months ? why or why not ?Draw and explain EOQ chart with the following data: Requirements per year = 1600 units, Ordering cost = Rs. 100/- per order, Carrying cost = Rs. 5/- per unit, Purchase cost = Rs. 80/- per cost. Assume the missing data.Please calculate the Economic Order Quantity under the following scenario: Annual demand= 80,000, Order cost = 31, Product unit cost = 20 and Holding cost = 4 (or 20% of Product unit cost)
- Yanks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in a month is 200, what would be the total cost?Diagnostic Supplies has expected sales of 98,000 units per year, carrying costs of $5 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity b-1. What is the average inventory? Average inventory b-2. What is the total carrying cost? Total carrying cost units unitsclarks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in a month is 200, what would be the total cost? a) $7,170 b) $7008.50 c) $8,700 d) $7,800
- JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller has asked you prepare a spreadsheet that shows the related CVP Analysis computations. Given the following information complete a CVP analysis for JPL, Incorporated: Unit sales Selling price per unit Variable expenses per unit Fixed expenses 11,200 units $ 75 per unit $45 per unit $ 210,000 Required: Use the data to answer the following. 1. Compute the CM ratio and variable expense ratio. 2. Compute the break-even sales. 3. Compute the margin of safety. 4. Compute the degree of operating leverage.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.a) Compute the breakeven sales dollars of cach product assuming the same sales mix remains constant. b) Prepare an analysis showing whether Product Z should be eliminated. The amount of change to net income should be computed. c) Assume the current demand of cach product is same as the sales volume the company has for the year. Below is the machine processing time required for cach product. Product Machine processing time in hours i. How many units should the company produce for each product if there is a constraint of only 24.000 hours of machine processing time in the year. ii. Compute the highest possible net income camed by the company. 3 2 An accountant has prepared the folowing product-line income statement for the year: Product Tatal No of mts sokd 5,000 4,000 4,000 Saks Varible enpermes 200,000 S 120,000 100,000 S 60.000 40,000 S 20,000 60,000 40,000 20,000 Cotribution mangin 80,000 40,000 20,000 Fihed expenses Rert Depreciin 10,000 12,000 8,000 5.000 6,000 2,000 2,400 3,000…