Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if you dont answer every letter i will not give a thumps up. please and thank you (Comprehensive EOO calculations) Knutson Products inc, is involved

if you dont answer every letter i will not give a thumps up. please and thank you image text in transcribed
(Comprehensive EOO calculations) Knutson Products inc, is involved in the production of airplane parts and has the following inventary, carrying, and storage costs 1. Ordens must be placed in round lots of 100 units. 2. Annual unit usage is 400,000 . (Assume a 50 -week year in your calculations.) 3. The carrying cost is 15 percent of the purchase price. 4. The purchase price is 540 por unit. 5. The ordaring cont is $500 per ordor. 7. The delivery time is 5 woek. Given the foregoing informabor: a. Determine the optimal EOQ lovel. b. How many orders will be placed annually? c. What is the imertory order point? (That is, at what level of inventory should a new order be placed?) d. What is the avecage inventory level? e. What would happen to the EOQ if annual unit sales doubled (all other unit costs and safety slocks remaining constant?? What is the elasticity of EOQ with rospect to sales? (That is, What is the percentage change in EOQ divided by the percentage change in sales?) if carrying costs double, what will happen to the EOO level? (Assume the original sales level of 400,000 units.) What is the elasticity of EOQ with respect to carrying costs? 9. It the ordering couts double, what will happen to the level of EOQ? (Again, assume orignal leveis of sales and carrying costs.) What is the elasticity of EOQ with respect to ordering costa

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Reporting Analysis And Decision Making

Authors: Shirley Carlon, Rosina Mcalpine, Chrisann Lee, Lorena Mitrione, Ngaire Kirk, Lily Wong

7th Edition

0730395294, 978-0730395294

More Books

Students also viewed these Accounting questions

Question

Give an example of a corrective control.

Answered: 1 week ago

Question

Where do you see the organization in 5/10 years?

Answered: 1 week ago