After inviting tenders, two quotations were received as follows: Supplier A : Rs. 2.20 per unit Supplier

Question:

After inviting tenders, two quotations were received as follows:

Supplier A : Rs. 2.20 per unit Supplier B : Rs. 2.10 per unit plus Rs. 2,000 fi xed charges irrespective of units ordered.

(1) Calculate the order quantity for which the purchase price per unit will be the same.

(2) The purchase offi cer wants to place an order for 15,000 units. Which supplier should be selected?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting

ISBN: 9788131732076

1st Edition

Authors: V. Rajasekaran, R. Lalitha

Question Posted: