Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bad dawg produces pork sausages annually which req

Bad Dawg produces pork sausages annually which requires 0.2 kilogram of raw material. The company...

90.2K

Verified Solution

Question

Accounting

image
Bad Dawg produces pork sausages annually which requires 0.2 kilogram of raw material. The company produces and sells 800.000 units of the product annually. The cost to place a single order is $30 per hour and the annual carrying cost of Inventory is 4% per annum. The normal time to place an individual order is four (4) hours. Currently, the company orders ten times per year. The main supplier has advised the financial controller of Bad Dawg that a 6% discount would be given if the entity doubles its current lot size. Management was also informed that a further 4% would be given if the entity increased Its order by 8,000 kllograms above the current lot size. The material is currently bought from its supplier for $60 per Kllogram Required: a. b. C Calculate the Economic Order Quantity (EOQ). (3 marks) Calculate the total cost based on the EOQ. (2 marks) Calculate the total cost for each individual altemate order quantities, including the current policy (6 marks) What is the optimal order quantity and why? (1 marks) Outline three importance of inventory management (3 marks) d

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

High School A and High School B both claim that they are superior. Last year School...

Mechanical Engineering
1.2K views

Check section W 14 X 132 for the column C1 subjected to the following loads Pu=...

Basic Math
1.2K views

Alana consulted a local master beekeeper, Dr. Beekeeper, concerning the death of some of her beehives....

Physics
1.2K views

9 Below are monochromatic light rays traveling through three substances A B and C A...

Basic Math
1.2K views

Evaluate the expression P 7 2 P 7 2

Accounting
1.2K views

View previous atten 6 Ft 1 of 3 Required information [The following information applies to...

Accounting
1.2K views

ZZZ Company had $750,000 cumulative operating losses prior to the beginning of last year. It...

Accounting
1.2K views

Emma Jones est a punto de comenzar un contrato de auditora anual recurrente. Como auditor...

Accounting
1.2K views

5 Required information [The following information applies to the questions displayed below.] Performance Plastics Company...

Finance
1.2K views

part B is wrong Tucson Machinery, Incorporated, manufactures numerically controlled...

Accounting
1.2K views

Question 3 The extracted income statement and comparative statements of financial position for WII Pte...

Finance
1.2K views

NikkiG's Corporation's 10-year bonds are currently yielding a return of 6.05 percent. The expected inflation...