User Account

All Pages

Determine the most cost-effective order quantity

Assignment Help Accounting Basics
Reference no: EM132929596

Question - Indigo Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case

1-299 cases $26.00

300-749 cases $24.86

750-1,499 cases $23.69

1,500 + cases $22.45

The economic order quantity is 161 cases and the annual usage is 25,921 cases. The ordering cost (K) is $6 per order and the carrying cost of inventory (H) is $12 per unit. Determine the most cost-effective order quantity.

Reference no: EM132929596

Questions Cloud

Organisation manage whs including hazard identification : Develop two checklists or tools which could assist the organisation manage WHS including hazard identification, assessment and control of risks.
Calculate the predetermined manufacturing overhead rate : Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours
What is the value per share using the fcff approach : What is the value per share using this FCFF approach? Musli Holdings Bhd is an investment holding company which is engaged in provision of management service.
Successful value creation needs successful value delivery : How will you apply this strategy in your respective organizations considering the COVID-19 Pandemic that we are currently experiencing?
Determine the most cost-effective order quantity : The ordering cost (K) is $6 per order and the carrying cost of inventory (H) is $12 per unit. Determine the most cost-effective order quantity
Find how much will be able to pull out each month : You have $ 750,675 saved for retirement. How much will you be able to pull out each month, if you want to be able to take withdrawals for 19 years?
What are the major factors influencing pay : What are the major factors influencing pay? What sort of advice would you give to someone whose goal is to earn a great deal of money?
Outline four advantages of a controlled market structure : 1. Create a selection process for Program coordinator and CMS coordinator of the university in detail.
Explain self managed credit plan and contracted credit plan : List and explain the differences between a self managed credit plan and a contracted credit plan.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is this stock worth today

Plymouth Co. expects to pay an annual dividend of $2.80 next year. the company has increased its dividend by 2.5% every year for the past 10 years and expects to continue to do so. What is this stock worth today if the required return is 16%?

  Sales staff to replace the network of agents

Kindle, Inc. manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 12.5% of sales. The income statement for the year ending December 31, 2013 is as follows.

  How much does the firm need to invest today

Toyda plans to invest money today at an interest rate of 5% compounded annually to have $50,000. How much does the firm need to invest today

  Describe the effect on a call options price

Describe the effect on a call options price caused by an increase in each of the following factors.

  Find which is not a required disclosure for inventories

Find which is not a required disclosure for inventories in the financial statements? The carrying amount of inventories pledged as collateral security.

  How much is company net cash flow from operating activities

A company reported net income of $202,500 during 2019. Using the indirect method, how much is the company's net cash flow from operating activities

  Estimating company current stock price

The Isberg Company just paid a dividend of $0.80 per share, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.25, the market risk premium is 5.00%, and the risk-free rate is 4.00%. Wh..

  List and describe four actions a firm can take to accelerate

List and describe one advantage and one disadvantage of raising external funds with debt, preferred stock, and common stock.

  Question regarding the comprehensive analysis

Incremental analysis is considered to be more economical than a comprehensive analysis, while being just as effective. Do you agree or disagree?

  What stakeholders should be considered

What stakeholders should be considered? What ethical issue, if any, underlies the dispute?

  Analyse the consequences for the company

The plant has a maximum capacity of 50,000 units. Analyse the consequences for the company if they accepted the new order and the customer wished to purchase

  What financing section of the statement of cash flow report

The company also purchased treasury stock for $5,000. The financing section of the statement of cash flows will report net cash inflows of

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