Question
In: Operations Management
A company uses 1,000 electric drills per year in its production process. The ordering cost is...
A company uses 1,000 electric drills per year in its production process. The ordering cost is $100 per order, and the carrying cost is assumed to be 40% of the unit cost. In orders of less than 120, drills cost $78 per unit; for orders of 120 or more, the price drops to $50 per unit.
Find the best ordering quantity for this product
Please show excel formulas and solver. Thank you.
Solutions
Expert Solution
There is no point in using excel and solver here, They are irrelevant and unncessary and mainly they cannot be used for these type of problems. So please understand and rate this answer with thumbs up kindly. It is a gesture that shows you support me. Thank you
keosha answered 2 years agoRelated Solutions
A company purchases 86 400 items per year for use in its production process. If the...
A company purchases 86 400 items per year for use in its
production process. If the unit cost is $9.25, the holding cost for
one unit is 60 cents per month, and the cost of making a purchase
is $540, determine the following if no shortages are allowed:
(i) The optimum order quantity.
(ii) The optimum total yearly cost.
(iii) The number of orders per year.
(iv) The time between orders.
(b) Suppose they plan to now allow backorders which...
the KIA company needs 6000 car tires per year. the ordering cost for these is 120$...
the
KIA company needs 6000 car tires per year. the ordering cost for
these is 120$ per order and the holding cost is assumed to be 50%
of the per unit cost. in orders of less than 225 tires cost $80.
for orders of 225 or more, the cost drops to $70 per unit. should
KIA take advantage of the quantity discount?
Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses...
Zepol Company is planning to produce 600,000 power drills for
the coming year. The company uses direct labor hours to assign
overhead to products. Each drill requires 0.75 standard hour of
labor for completion. The total budgeted overhead was $1,777,500.
The total fixed overhead budgeted for the coming year is $832,500.
Predetermined overhead rates are calculated using expected
production, measured in direct labor hours. Actual results for the
year are: Actual production (units) 594,000 Actual variable
overhead $928,000 Actual direct...
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...
Victory Company uses weighted-average process costing to account
for its production costs. Conversion cost is added evenly
throughout the process. Direct materials are added at the beginning
of the process. During November, the company transferred 720,000
units of product to finished goods. At the end of November, the
work in process inventory consists of 199,000 units that are 50%
complete with respect to conversion. Beginning inventory had
$179,205 of direct materials and $163,900 of conversion cost. The
direct material cost...
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...
Victory Company uses weighted-average process costing to account
for its production costs. Conversion cost is added evenly
throughout the process. Direct materials are added at the beginning
of the first process. During November, the first process
transferred 765,000 units of product to the second process.
Additional information for the first process follows. At the end of
November, work in process inventory consists of 204,000 units that
are 50% complete with respect to conversion. Beginning work in
process inventory had $440,895...
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...
Victory Company uses weighted-average process costing to account
for its production costs. Conversion cost is added evenly
throughout the process. Direct materials are added at the beginning
of the process. During November, the company transferred 810,000
units of product to finished goods. At the end of November, the
work in process inventory consists of 197,000 units that are 90%
complete with respect to conversion. Beginning inventory had
$392,730 of direct materials and $123,413 of conversion cost. The
direct material cost...
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...
Victory Company uses weighted-average process costing to account
for its production costs. Conversion cost is added evenly
throughout the process. Direct materials are added at the beginning
of the process. During November, the company transferred 795,000
units of product to finished goods. At the end of November, the
work in process inventory consists of 186,000 units that are 40%
complete with respect to conversion. Beginning inventory had
$510,120 of direct materials and $65,205 of conversion cost. The
direct material cost...
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...
Victory Company uses weighted-average process costing to account
for its production costs. Conversion cost is added evenly
throughout the process. Direct materials are added at the beginning
of the first process. During November, the first process
transferred 775,000 units of product to the second process.
Additional information for the first process follows.
At the end of November, work in process inventory consists of
209,000 units that are 40% complete with respect to conversion.
Beginning work in process inventory had $447,720...
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...
Victory Company uses weighted-average process costing to account
for its production costs. Conversion cost is added evenly
throughout the process. Direct materials are added at the beginning
of the process. During November, the company transferred 740,000
units of product to finished goods. At the end of November, the
work in process inventory consists of 182,000 units that are 80%
complete with respect to conversion. Beginning inventory had
$539,370 of direct materials and $110,700 of conversion cost. The
direct material cost...
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...
Victory Company uses weighted-average process costing to account
for its production costs. Conversion cost is added evenly
throughout the process. Direct materials are added at the beginning
of the process. During November, the company transferred 755,000
units of product to finished goods. At the end of November, the
work in process inventory consists of 199,000 units that are 50%
complete with respect to conversion. Beginning inventory had
$558,090 of direct materials and $128,175 of conversion cost. The
direct material cost...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- identify one intrapersonal relationship and evaluate its component.
- Using Python in vs code: The distribution of letters in a document has a distinctive and...
- Why is De Beers exploring the diamond reselling market? How does the creation of IIDV affect...
- programming in Python The body mass index (BMI) is calculated as a person’s weight (in lb)...
- 1. Show the steps in merging A and B into C where A= 8, 12, 19,...
- 1. Given the following information, determine the beta coefficient for Stock L that is consistent with...
- Generate the first ten rows of Pascal triangle using MATLAB. Post code in the response
ADVERTISEMENT