Economic order quantity-optimal order quantity

Assignment Help Accounting Basics
Reference no: EM13256500

VF company is a distributor of air filter to retail stores. Itbuys its filters from several manufacturers. Filters are ordered inlot sizes of 1000 and each order costs Rs 40 to place. Demand fromretail stores is 20,000 filters per month, and carrying costs is Rs0.10 a filter per month.

l. What is the economic order quantity?

ll. What would be the optimal order quantity if the carrying cost were cut in half to Rs. 0.05 a filter per month?

lll. What would be the economic order quanitity ifordering costs were reduced to Rs 10 per order?

Reference no: EM13256500

Questions Cloud

How can the u.s. stop going further in debt : why would one want to se a rent to own store for mechandise ? think of at least three reason and record them below.
Determine what is the converter efficiency : a boost converter operates at 20 khz, and converts power from a solar panel to a battery bus. the panel has norminal volate of 16v and current up to 3 A. the battery bus is 48 v. the transistor can be modelled as a 0.5 v constant forward drop.
What would be the consequence of that recruiting strategy : Suppose that an employer has a close working relationship with your college and primarily recruits from there for professional positions. What would be the consequence of that recruiting strategy? Would it tend to result in adverse impact?
Evaluate kc and kp for the reaction : The emerging gas is collected in a 5.00L flask and is found to contain 8.62g of carbon monoxide, 2.60g of hydrogen gas, 43.0g of methane, and 48.4g of water vapor. Assuming that equilibrium has been reached, calculate Kc and Kp for the reaction.
Economic order quantity-optimal order quantity : What is the economic order quantity? What would be the optimal order quantity if the carrying cost were cut in half to Rs. 0.05 a filter per month?
Write the journal entries for the transaction : On December 31, 2007, BradstormCompany had 1,500,000 shares of $10 par common stock issued and outstanding. Write out the journal entries for these transaction.
Find what is the direction of the netforce on the loop : A filamentary current along thex axis has a current in the b a x direction. A square loop of current in the xy plane centeredat (0,10,0) has a current in the counter-clockwise direction. What is the direction of the netforce on the loop
Will sanibel be affected : It negotiates a 1-month forward contract at the beginning of every month to hedge its payables. Assume the British pound appreciates consistently over the next 5 years. Will Sanibel be affected? Explain.
How far away is an object that is in focus : Suppose your 50.0 mm focal length camera lens is 53.5 mm away from the film in the camera. How far away is an object that is in focus

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.

  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!

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