From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10 Carrying cost per unit per annum: = Rs. 10 Purchase price per unit = Rs. 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk. (a) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990

From the following information, calculate the extra cost of material by following EOQ:

Annual consumption: = 45000 units

Ordering cost per order: = Rs. 10 

Carrying cost per unit per annum: = Rs. 10 

Purchase price per unit = Rs. 50

Re-order quantity at present = 45000 units

There is discount of 10% per unit in case of purchase of 45000 units in bulk.

(a) No saving

(b) Rs. 2,00,000

(c) Rs. 2,22,010

(d) Rs. 2,990
by

1 Answer

Answer :

(d) Rs. 2,990
by

Related questions

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Description : During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The  labour efficiency variance was Rs 7,800 favourable. How many standard hours were produced? (a) 1,200 (b) 16,300 (c) 17,500 (d) 18,700

Last Answer : (d) 18,700

)If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm - (1) 24 (2) 18 (3) 36 (4) 60

Description : )If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm - (1) 24 (2) 18 (3) 36 (4) 60

Last Answer : (3) 36 Explanation: The standard method of calculating average variable cost is to divide total variable cost by the quantity, illustrated by this equation : Average Variable Cost = Total Variable Cost/ Quantity of ... , Average Total Cost = 45000/2500 = 18 So Average Variable Cost = 54 - 18= 36

If the average total cost is Rs. 54, total fixed cost is Rs. 45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm : (1) 24 (2) 18 (3) 36 (4) 60

Description : If the average total cost is Rs. 54, total fixed cost is Rs. 45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm : (1) 24 (2) 18 (3) 36 (4) 60

Last Answer : 36

Which one out of the following is not an inventory valuation method? (a) FIFO (b) LIFO (c) Weighted Average (d) EOQ

Description : Which one out of the following is not an inventory valuation method? (a) FIFO (b) LIFO (c) Weighted Average (d) EOQ

Last Answer : (d) EOQ