Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 420 boxes per month (four weeks). It costs RO 100 to make and receive an order and holding cost is RO 3.5 per box per year. The prices per unit depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity while not consider the purchase cost? Round-up to the nearest integer Select one: O a. 537 O b. 170 Oc 199 Od. 166 e. None is correct

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
16/ Do not solve it in excel, please.
Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 420 boxes
per month (four weeks). It costs RO 100 to make and receive an order and holding cost is RO 3.5
per box per year. The prices per unit depend on quantities purchased such that the order
quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and
quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity while not
consider the purchase cost? Round-up to the nearest integer
Select one:
O a. 537
b. 170
O c. 199
O d. 166
e. None is correct
Transcribed Image Text:Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 420 boxes per month (four weeks). It costs RO 100 to make and receive an order and holding cost is RO 3.5 per box per year. The prices per unit depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity while not consider the purchase cost? Round-up to the nearest integer Select one: O a. 537 b. 170 O c. 199 O d. 166 e. None is correct
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education