Calculate the eoq, Managerial Accounting

Assignment Help:

Calculate the EOQ

An agent supplies 1000 units per calendar month (PCM) OF A PRODUCT TO CONSUMER. The cost per unit is £175 and the amount cost of storage space is £40. Associated cost with Ordering/Re-ordering is £35 per order and interest rates are constant at 12.5% per year.

1. Calculate the annual holding cost of one unit

2. Calculate the EOQ.

3. Calculate the  annual number of re-orders necessary to satisfy the EOQ.

4. Draw a graph containing total cost, holding cost and re-ordering cost against order quantity and comment upon it. Use an order quantity range from 1 to 40 on your horizontal axis

5. Suppose now the EOQ was 3 unit less than your calculate EOQ. Calculate the cost penalty for deviating from the EOQ value by these 3 units.


Related Discussions:- Calculate the eoq

Summary journal entries, Stine Company uses a job order cost system. On May...

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,730 and two jobs in process: Job No. 429 $2,150, and Job No. 430

Process costing, I want some to solve my process costing problem solved

I want some to solve my process costing problem solved

Inappropriate standards-implementation breakdown, Inappropriate standards (...

Inappropriate standards (or targets): This is a problem arising from deficiencies in planning. If not enough time and resources are devoted to setting accurate standards in th

Explain the shut down cost, Explain the Shut down cost A cost which wi...

Explain the Shut down cost A cost which will be still be required to be incurred even though a plant is closed or shut down for a temporary period. Ffor example the cost of

Use of computer systems in linear programming, Use of Computer Systems in L...

Use of Computer Systems in Linear Programming When a computer is to be used for linear programming there are a number of steps: (1) Development of the equations which descri

State the working capital turnover ratio, State the Working capital turnove...

State the Working capital turnover ratio  Meaning: this ratio establishes a relation ship among net sales and working capital. Working capital turnover ratio shows the vel

Breakeven point, A company manufactures a one product. Estimated cost data ...

A company manufactures a one product. Estimated cost data regarding this product and other information for the product and the company are as follows: Sales price per unit Rs.2000

Break event, The Braggs & Struttin'' Company manufactures an engine for car...

The Braggs & Struttin'' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of

What is master budget, What is Master budget Financial budget are conce...

What is Master budget Financial budget are concerned with cash receipts and disbursements working capital. Several functional budgets are integrated into master budget. This bu

Types of factoring, Types of Factoring The factoring facilities can be ...

Types of Factoring The factoring facilities can be largely categorized in four groups that are as follows: 1)   Full service non-recourse (old line) 2)   Full service rec

Write Your Message!

Captcha
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