Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tom Yum Goong, a Thai restaurant in SS2 Petaling Jaya is trying to identify the optimal order quantity for their special tom yum ingredients. The

image text in transcribed

Tom Yum Goong, a Thai restaurant in SS2 Petaling Jaya is trying to identify the optimal order quantity for their special tom yum ingredients. The restaurant predicted that it will sell 440,400 bowls every year at an average selling price of RM6 per bowl. They purchase the ingredients directly from a supplier in Thailand at a rate of RM2.50 per bowl. The costs for storing the ingredients are RM1.30 per bowl. Ordering costs are RM300 per order because it has to be transported from Thailand. Required: a. Calculate the EOQ (economic order quantity). (4 marks) b. Calculate the total inventory cost if orders are placed : (1) 1 time 20 times (111) 30 times (iv) 50 times (16 marks) (Total 20: 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

Auditing An International Approach

Authors: Wally Smieliauskas, Amy Kwan, Kathleen Cogliano, Catherine Barrette

8th Canadian Edition

ISBN: 1259451275, 978-1259451270

More Books

Students also viewed these Accounting questions

Question

Tell what the word schizophrenia means.

Answered: 1 week ago