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URGENT A, If EOQ of a company is 1,000 units, holding cost per unit per year...

URGENT

A, If EOQ of a company is 1,000 units, holding cost per unit per year is Rs.10. What is total ordering cost?            [2 Marks]

B, COMPANY annually consumes 10,000 units of component P. The carrying cost of this component is Rs.2 per unit per year and the ordering costs are Rs.100 per order. PoMA uses an order quantity of 500 units. The company operates 200 days per year, and the lead time for ordering component P is 14 days. What is the re-order point (in terms of units)?

C,

RT plc sells three products                           

Product R has a contribution to sales ratio of 30%.                            

Product S has a contribution to sales ratio of 20%.                             

Product T has contribution to sales ratio of 25%.                                

Monthly fixed costs are Rs.8,000,000.                     

If the products are sold in the ratio:                         

R: 2         S:5          T:3

What is the monthly break-even sales revenue to the nearest Rupee?                  

Business   Accounting   
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Homework Answers

Answer #1

A) for this step some information is missing. Like total consumption and ordering cost

B) re order point formula

= maximum consumption × maximum lead time

= 500 units × 14 days

= 7000 units

C) BREAK EVEN SALES FORMULA

= FIXED COST / PV RATION

R = 800000 / 30% = 2666667

S = 800000/ 20 % = 4000000

T = 800000/ 25% = 3200000

Total break even sales 9866667

Break even sales of R = 9866667 × 2/10 =1973334

Break even sales of s = 9866667 × 5/10 = 4933334

Break even sales t = 9866667 ×3/10 = 2960000

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