Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Ahmed works in a bakery which operates 6 days a week, 50 weeks a year. The bakery needs flour which is delivered to

 

Mr. Ahmed works in a bakery which operates 6 days a week, 50 weeks a year. The bakery needs flour which is delivered to the bakery at 10 OMR each order. Each operational day, Mr. Ahmed needs 10 bags of four, 10 kg weight each bag. Each bag costs OMR 12. The annual holding cost per bag is 15% of the purchase price of bag. If the shelf life of the flour bags is 2 weeks only, and Mr. Ahmed orders only accordingly to meet the demand for 2 weeks each order, then what will be the total variable cost per year? (1.5 points) A. 320.00 B. 331.80 c. 358.00 D. 368.00 E. None is correct, the correct answer is

Step by Step Solution

3.55 Rating (145 Votes )

There are 3 Steps involved in it

Step: 1

Annual DemandD 10506 3000 Bags Ordering cost per orderS 10 OMR Price per ... 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

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Accounting questions