FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Compute the EOQ given the following information.
The annual consumption is 6000 units, ordering cost is RO 60 per order and carrying cost is 20% of the price.
The supplier quotes the following prices for the component.
No of units bought at time
Price per unit
Less then 1000
OMR 10
1000 to 2999
OMR 9.5
3000 and above
OMR 9
What is the optimal order quantity?
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- Use the below table to answer the following questions. Selling Price = $43.00 Fixed Cost $47,200 47, 200 47,200 57, 200 57, 200 57, 200 67,200 67,200 67,200 Required Variable Cost 15 16 17 15 16 17 15 16 17 2,200 $14,400 12, 200 10,000 4,400 2,200 (5,600) (7,800) (10,000) 3,200 $42,400 39, 200 36,000 32,400 29, 200 26,000 22,400 19, 200 16,000 Sales Volume 4,200 Profitability $70,400 66, 200 62,000 60,400 56,200 52,000 50,400 46, 200 42,000 5,200 $98,400 93,200 88,000 88,400 83,200 78,000 78,400 73,200 68,000 6, 200 $126,400 120, 200 114,000 116,400 110, 200 104,000 106,400 100, 200 94,000 a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Franklin projects the following data for Delatine: sales, 4,200 bottles; fixed cost, $47,200; and variable cost per unit, $17. c. Franklin is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an…arrow_forwardREQUIRED Calculate the number of orders that should be placed based on the quantity that will keep the cost of placing the orders and the holding costs at a minimum. INFORMATION The following information was supplied by KL Suppliers for the only product that it sells: Monthly demand Unit cost Fixed cost per order Carrying cost per unit EOQ 300 units R20 R25 10% of the unit cost 300 unitsarrow_forwardCompany XYZ has total fixed costs of $9,000. Assume a selling price per unit of $40 and total variable cost per unit of $30, what is the breakeven point in ($) value? Select one: O a. None of the given answers O b. 900 Oc 360,000 O d. 36,000 O e. 90,000arrow_forward
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