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The following information pertains to Emy Manufacturing Corporation's Product X:
Annual demand 33,750 units
Annual cost to hold one unit of inventory P15
Setup cost (or the cost to initiate a production run) P500
Beginning inventory of product X 0
At present, the Company produces 2,250 units of Product X per production runt for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X.
20.If the EOQ model is used, the number of production runs should be
a.15 runs. c. 67.5 runs.
b.1,500 units. d. 22.5 runs.
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- Rocky River Company is a price - taker and uses target pricing. Refer to the following information: Production volume Market price Desired operating income Total assets 601,000 units per year $30 per unit 17% of total assets $13,800,000 What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold. OA. $24.90 OB. $26.10 OC. $30.00 OD. $5.101. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 unitsCost of placing one Order: RO 60Carrying cost per unit: RO 22. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units.4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 unitsper month. The valve cost of…For XYZ Company , how many units of their product would have to be sold to yield a target operating income of $92,000 for the financial year ending 2021, assuming variable costs are $50 per unittotal fixed costs are \$8, , and the unit selling price is $60 ? a. 800 units b. 2,000 units c. 10,000 units d. 9,200 units
