Determine the economic order quantity, Cost Accounting

Assignment Help:

A retailer knows the annual demand for one of its product is 100,000 units, the ordering costs are £25 per order and the average carrying cost per unit is 35 pence. You are required to:

1. Determine the Economic Order Quantity given the data above.

2. Produce sensitivity analysis assuming a change of up to 10% up or down on each of the factors individually and on all factors simultaneously.

3. Make a final recommendation to the board of the company, as to the number of units it should include in each order.

 


Related Discussions:- Determine the economic order quantity

Determine the rate of return, A forecasted increase in metal prices has enc...

A forecasted increase in metal prices has encouraged the ABC Resource Company to consider the expansion of the capacity in one of its mine operations in Northern Ontario. For this

Depreciable cost, A organization is evaluating a proposed 4-year project.  ...

A organization is evaluating a proposed 4-year project.  The depreciable cost will have the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installatio

Calculate the allocations and totals, A company wishes to devise a fair mea...

A company wishes to devise a fair means of allocating funds to its four main departments, namely Accounts, Production, Sales and Transport. The total allocation is to be £100,000.

Calculate an appropriate absorption rate, Three of the cost items that are ...

Three of the cost items that are included in the production overhead for a factory for a period are: Machine maintenance labour $33,600 Power

Calculate the equal monthly payments and cost of financing, Calculate the e...

Calculate the equal monthly payments and the cost of financing on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% pe

Evaluate the income statement for the year, DF is describing its consolidat...

DF is describing its consolidated financial declaration for the year ended 31 December 2009. DF has a numerous investments in other entities. Some of these investments are provided

Process costing, If question (CA IPCC) is silent which method to follow: av...

If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?

Prepare a master budget, Pecos Canyon Winery is a small vineyard/winery loc...

Pecos Canyon Winery is a small vineyard/winery located in the Big Bend area of West Texas. The initial cabernet grape vines were planted in the spring of 2004 with the first wine p

Why different countries have different accounting standards, As a potential...

As a potential investor, what is the problem with different countries having different accounting standards? As the president of a multinational company, what is the problem with

Definitions of manufacturing concepts, Interstate Manufacturing produces br...

Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000 Repair parts 16,000

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