Which of the following typically happens as prices for a good or service rises?a. suppliers leave the marketb. consumers seek mo
1 answer:
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Answer:
$157 per equivalent unit
Explanation:
Note: <em>The full question is attached as picture below</em>
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Conversion cost per equivalent unit = Conversion costs added during February / Equivalent units of conversion costs
Conversion cost per equivalent unit = $1,100,000 / 7000 units
Conversion cost per equivalent unit = $157.14286
Conversion cost per equivalent unit = $157 per equivalent unit
Answer:
a.
EOQ = 2,944 units
b.
Setup cost = Numbers of Order x Ordering cost = $8.83
Holding Cost = $8.83
Explanation:
a.
Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.
As per given data
Annual Demand = 50 per week x 52 weeks in a year = 2,600 bolts
Ordering cost = $10
Carrying cost = $0.03 x 20% = $0.006
EOQ =
EOQ =
EOQ = 2,943.92 = 2,944 units
b.
Setup cost = Numbers of Order x Ordering cost = (2,600 / 2,944) x $10 = $8.83
Holding Cost = (2,944 / 2) x $0.006 = $8.83