Orders per year , Managerial Accounting

Assignment Help:

Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother's hardware shop, is in charge of purchasing. She estimates that it costs $10 each time an order is placed. This cost contains her wages, the cost of the forms used in placing the order, and so on. Moreover , she estimates that the cost of carrying 1 screw in inventory for a year is one-half of 1 cent. Suppose that the demand is constant throughout the year.

 

(a) How many number 6 screws should Lila order at a time if she wishes to decrease total inventory cost?

(b) How many orders per year would be placed? What would the yearly ordering cost be?

(c) What would the average inventory be? What would the yearly holding cost be

 


Related Discussions:- Orders per year

State the important assumptions of break-even analysis, Assumption of break...

Assumption of break even analysis The break even analysis is based upon the following assumptions : 1) All elements of cost, i.e., production , administration and selling di

State direct material cost standard, State Direct material cost standard ...

State Direct material cost standard The determination of direct material cost standard would involve: a) Determination of quantity standards and b) Determination of pric

Explain the going rate pricing, Going rate or follow the crowd pricing:- ...

Going rate or follow the crowd pricing:- In this method the firm price its products at the similar level as that of the competition. This method supposes that there will be no

Correlation coefficient, Correlation coefficient (r) Correlation coeffi...

Correlation coefficient (r) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. r = nΣxy   -  Σx  Σy

Cost-volume profit analysis , COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCT...

COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCTION You can employ cost-volume-profit analysis to examine the natural relationship among cost, volume, and profit in pricing decision

Explain the terms - maintenance and improvement, Explain the terms - mainte...

Explain the terms - maintenance and improvement Maintenance ; under the maintenance function, the management must first establish policies rules directives and standard operat

Projected balance sheet method, In this method, approximation of various as...

In this method, approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in the ensuring period. Afterward

Open account, Open Account Credit sales are usually on open account tha...

Open Account Credit sales are usually on open account that implies which the seller ships the goods to the buyer and afterward sends the bill invoice. Consignment In th

Strengths and weakness of net book value and paybac, Strengths and weaknes...

Strengths and weakness of net book value and pay back method

Time series analysis, how do i use least squares method to solve semi avera...

how do i use least squares method to solve semi average problem?

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