User Account

All Pages

Calculate the annual relevant ordering cost for the eoq

Assignment Help Accounting Basics
Reference no: EM133152164

Question - Dransfield Company sells electronic components. The store uses the Economic Order Quantity model (EOQ) to make inventory decisions. For the upcoming year, the company is trying to determine the EOQ for component A51. Each unit can be purchased for $300.

- Expected annual demand - 10,000 units

- Ordering cost per purchase order - $40

- Carrying cost - the company has required rate of return is 25% plus $5 of insurance costs.

Required -

1. Calculate the EOQ.

2. Calculate the annual relevant ordering cost for the EOQ calculated in requirement 1.

3. Calculate the annual relevant carrying costs for the EOQ calculated in requirement 1.

Reference no: EM133152164

Questions Cloud

Evaluation process for hurricane risks : Describe how you feel the evaluation process for hurricane risks applies to (or does not apply to) risk management in a larger organization.
Comparative competitive efforts report : After each decision round, it is important for the management teams at all companies to review the information provided in the 4-page Comparative Competitive Ef
Risk for the investment company : In my neighborhood there are alot of abandon homes so the town decided to purchase the homes from the bank and turn them into computer labs and outreach program
What makes a curriculum effective : Differences in content-rich and skills-based curricula and Educational reform through high stakes testing - The effective of formative assessment on academic
Calculate the annual relevant ordering cost for the eoq : The store uses the Economic Order Quantity model (EOQ) to make inventory decisions. Calculate the annual relevant ordering cost for the EOQ
Changing government policies and regulations : 1. High fat and high-calorie food perceived as not good by health-conscious people
Choose three more ingredients : Choose three more ingredients you would use in appetisers and salads and identify their nutritional values
Identify a suitable area for research : Identify a suitable area for research and develop a detailed research question with the aim, scope, objectives and success criteria for the project
What are the possible values for the random variable : If we define a random variable that measures the total day's catch for Sam's fleet, what are the possible values for the random variable

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd