User Account

All Pages

What is the optimal order quantity

Assignment Help Cost Accounting
Reference no: EM132959190

Question - Vostick Filter Company is a distributor of air filters to retail stores. It buys its filters from several manufacturers.

Filters are ordered in lot sizes of 1,000, and each order costs Php. 40 to place. Demand from retail stores is 20,000 filters per month, and carrying cost is Php. 0.10 a filter per month.

a. What is the optimal order quantity with respect to so many lot sizes (that is, what multiple of 1,000 units should be ordered)?

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

c. What would be the optimal order quantity if ordering costs were reduced to Php. 10 per order?

Reference no: EM132959190

Questions Cloud

Arising out of the construction operations : Johnson Contractors has been hired to build a shopping mall for Jack Hickman. In the construction contract, Johnson agrees to be responsible for Mr. Hickman's l
Compute basic and diluted earnings per share for the year : Ames's net income for the year ended December 31, 2021, is $780,000. Compute basic and diluted earnings per share for the year
What is the journal entry to record the declaration : On June 30, Manny's Health Food Store, Inc. Board of Directors declared a cash dividend of $.25 per share. What is the journal entry to record the declaration
Describe the use and importance of budgetary accounts : Describe the use and importance of budgetary accounts used by governments. Comment on whether you find the use of budgetary information
What is the optimal order quantity : What is the optimal order quantity with respect to so many lot sizes (that is, what multiple of 1,000 units should be ordered)
What sum of money set aside at his time : Php 4000.00 will be spent at the end of each successive year until the boiler is scrapped at the age of 35 years. What sum of money set aside at his time
What was campus bagels margin of safety : During this same year, Campus Bagels incurred fixed costs of $75,000 and variable costs of $0.25 per bagel. What was Campus Bagels Margin of Safety
Which the two most common primary research methods are : Which the two most common primary research methods are? To gain credibility with your audience in business reports, do all of the following except
Which introduction of a business report or proposal should : Which introduction of a business report or proposal should always? Which A formal work plan includes all of the following except

Reviews

Write a Review

Cost Accounting Questions & Answers

  Compute the number of pans that must be sold for ingo

Compute the number of pans that must be sold for Ingo to break even. How many pans must be sold for Ingo to earn a before-tax profit of $12,600?

  The chapter identified five financial management

The chapter identified five financial management titles with responsibilities

  Prepare a production budget for the third quarter

Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.

  What the contribution margin earned by Richardson

The company produced 2,450 units and sold 2,375 units, both as budgeted. What the contribution margin earned by Richardson

  Evaluate the merchandise inventory by the fifo method

Evaluate the merchandise inventory by the FIFO method, record the transactions in the Journal, calculate the cost of the materials used and the final inventory.

  Support recommendation to board of directors

As the company accountant you must give the necessary information to support your recommendation to Board of Directors.

  Discuss the financial statements

hat does each financial statement tell you as a business owner? What decisions/changes in operations will you make based on the results reported in your statements?

  What is the amount of joint cost of each production run

If there are no additional processing costs incurred after the split-off point, what is the amount of joint cost of each production run allocated to Product X?

  What is the cost of units ending work-in-process

What is the cost of units ending work-in-process Using the FIFO Costing? What is the cost of units transferred out Using the FIFO Costing?

  What is the total labor yield variance

What is the total labor yield variance? What is the total material yield variance? During the current month Sunshine Company manufactured 500 55-gallon drums.

  Calculate minimum transfer price that peg division accept

Calculate the minimum transfer price that the Peg Division should accept. Discuss whether it is in the Peg Division's best interest to accept the offer.

  What are the variable and absorption-cost net incomes

What are the Variable and absorption-cost net incomes? Variable manufacturing costs per unit 2 Beginning inventory. Variable selling costs per unit sold 1

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