Following information relating to a type of raw material is available: Annual demand 2,400 units, Unit price OMR .2.400, Ordering cost per order OMR.4.000, Storage cost 2% per annum, Interest rate 10% per annum. Calculate Economic Order Quantity.
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- Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 units ; Cost of placing one Order: RO 60Carrying cost per unit: RO 2 cost per unit: RO 10Assume the following information:VolumeTotal Cost100 units$1,30090 units1,500106 units1,750What is the variable cost per unit? (Round answer to three decimal places.)a. $28.125b. $15.625c. $20.178d. $13.175The activity driver for the shipping activity of Withstand Inc. is the number of orders shipped. Product A uses 30 orders, and Product B uses 70 orders. Calculate the consumption ratios for each product. (Note: Round your answers to two decimal places.) a.0.30; 0.70 b.0.25; 0.75 c.0.20; 0.80 d.0.65; 0.35
- In the process of finding the optimum order quantity the following costs are obtained per order or per unit annually. Inspection Cost = SR 4 Cost of Interest = SR 4 Insurance Cost = SR 2 Administration Cost = SR 4 Obsolescence = SR 3 Depreciation Cost = SR 2 Breakage Cost = SR 2 Given that the annual Demand is 500,000. Number of order?A products demand in each period follows a Normal distribution with mean of 60 and standard deviation of 10. The order up to level S is 204. Lead time is 2 periods. What is the expected on hand inventory ? Show all formulas used, calculations and results. Do on Black Bd b. What is the stoch out probability. Show all formulas used, calculations and results. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).Given the following information determine the FIXED COST at high volume using the high-low method: Sales = 48,000 , Supplies Costs = 4,750 ; Sales = 41,200 , Supplies Costs = 3,100 ; Sales = 43,000 , Supplies Costs = 4,210; Sales = 24,000 , Supplies Costs = 2,640. NOTE: USE up to 8 (eight) decimal places of the variable component in your computation.
- According to following information, which of the following is the total cost function in the form of Y = F+V*X ? Number of units produced is 16500. %3DUse the data points provided in the attached Excel file to calculate the following: Show the formulas used for each cell. 1. The Annual Usage - 2. The Cumulative Ratio of Annual Usage (%) 3. The Cumulative Ratio of Usage Value (%) and ABC classification.Solve for the cost line equation using the high-low method: \table[[Month, Units Produced,Total Cost], [1,4,500,$ 38,000
- Use a cost-volume graph to determine the type of cost behavior exhibited in Groups A, B, and C. In the graph, volume should range from 0 to 38, 400 units (in 4,000 unit increments), and cost should range from $0 to $49,000 (in $5,000 increments). Volume Group A Group B Group C (applicable to each group) Costs Costs Costs 3,200 $3,640 $1,400 $ 3,360 19,200 17,640 8,400 3,360 25,600 23,240 11,200 3, 360 32,000 28,840 14,000 3,3601. Identify the cost behavior (fixed, mixed, or variable) in the three groups. Group Cost behavior A B C 2. What is the expected total cost for Group B if volume is 0? $Answer 3. What is the expected total cost for Group C if volume is 0?Use a cost-volume graph to determine the type of cost behavior exhibited in Groups A, B, and C. In the graph, volume should range from 0 to 24,000 units (in 4,000 unit increments), and cost should range from $0 to $35,000 (in $5,000 increments). Volume Group A Group B Group C (applicable to each group) Costs Costs Costs 2,000 12,000 16,000 20,000 $2,600 $1,000 $2,400 12,600 6,000 2,400 16,600 8,000 2,400 20,600 10,000 2,400 1. Identify the cost behavior (fixed, mixed, or variable) in the three groups. Group Cost behavior A B C 2. What is the expected total cost for Group B if volume is 0? $ 3. What is the expected total cost for Group C if volume is 0? CheckSuppose that the total cost function, in dollars, for the production of x units of a product is given by the equation shown below. C(x) = 4,500 + 30x + 0.2x² Then the average cost of producing x items is represented by the following equation. total cost 4,500 C(x) + 30 + 0.2x (a) Find the instantaneous rate of change of average cost with respect to the number of units produced, at any level of production. (b) Find the level of production at which this rate of change equals zero. X = (c) At the value found in part (b), find the instantaneous rate of change of cost and find the average cost. instantaneous rate of change of cost average cost What do you notice?