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

Q

Of all the yoga students in a particular area, 20% study with Patrick and 80%...

Geometry
Q

CHOCO is a new firm that has raised £150,000 (book value) by selling ordinary shares. Management...

Finance
Q

______ can be defined as maintaining critical parameters in the internal environment within tolerable ranges. Irritability b....

Medical Sciences
Q

Compare the standard molar entropy for three common forms of iodine in different states ofmatter. Explain...

Chemistry
Q

Using behavioral VHDL, design a Mealy-type finite state machine that detects input test vector that contains...

Electrical Engineering
Q

C Age percentage of life span A constant loss B early loss C late loss...

Biology
Q

The most common sexually transmitted infection in the United States is O hepatitis C O...

Biology
Q

What is a common misconception of evolution A Evolution is a theory and there is...

Biology
Q

The slits are 1 mm apart from each other and illuminated with a light of...

Physics
Q

La empresa tiene los siguientes estandares de GIF: GIF variable: 5 horas a $13...

Accounting
Q

How are Adele's financial statements impacted when tickets to her North American tour sell out...

Accounting
Q

On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer...

Accounting