Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suraya Bersih is a distributor of surprise balloons. Murni Cantik is a local retail outlet which sells balloons are shipped in cartons of 42. Suraya

Suraya Bersih is a distributor of surprise balloons. Murni Cantik is a local retail outlet which sells balloons are shipped in cartons of 42. Suraya Bersih pays all incoming freight, and Murni Cantik surprise balloons. Murni's purchases the balloons from Suraya at RM0.85 per balloon; the does not inspect the balloons due to Suraya Bersih's reputation for high quality. 0 Annual demand is 158,520 balloons at a rate of 3191 balloons per week. Murni Cantik earns 7% on its cash investments. The purchase-order lead time is one week. The following cost data are available: Tdays Relevant ordering costs per purchase order Carrying costs per carton per year: Relevant insurance, materials handling, breakage, etc., per year Required: RM130.00 P RM0.77 C orderig ca (6 marks) } (2 marks) a) If Murni's makes an order once per month, compute the relevant total costs. b) Compute the economic order quantity. 2(0)() C c) Purchasing at the EOQ recommended level, how many deliveries will be made during each time period? Show your computation. (2 marks) d) Purchasing at the EOQ recommended level, compute the relevant total costs. (2 marks)

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

Microsoft Dynamics Ax 2012 R3 Financial Management

Authors: Mohamed Aamer

1st Edition

1784390984, 978-1784390983

More Books

Students also viewed these Accounting questions

Question

(f) What type of factorial design it is?

Answered: 1 week ago

Question

1. Explain the 2nd world war. 2. Who is the father of history?

Answered: 1 week ago

Question

2. Identify issues/causes for the apparent conflict.

Answered: 1 week ago