[agnieszkap]

I’ll check it with the provider, thank you.

[agnieszkap]

I think I forgot to put |”0″ in 8,245,440 and that’s why I got 908.
I’m getting 2,871 and then 0.98.
Thank you!

[agnieszkap]

Hi Sir,

I’m sorry, I know I should put more work into it.

1) Oh, it seems to be easy now:

Budgeted units 20,000 x 3.25 (fixed prod + fixed sales O/H) = 65,000

2) The same with that one:

(Material+Labour+Variable Prod O/H+Fixed Prod O/H) 12.5 * 2,000 = 25,000

Thanks a million for your help and patience.

[agnieszkap]

Hi Sir,

I’m sorry I’m in the wrong place.

I think I was just tired and couldn’t think properly last night 😉
Sorry to bother you again, but if you have a moment could you just check/correct the following calculations:

200 – 3% discount

Reorder 15000/200 = 75 x 2 = 150
Holding 200/2=100 x (1.5 x 97%) = 145.5
Purchase 15000 x (15 x 97%) = 218,250

Total cost 218,546

203 – 3% discount

Reorder 15000/203 = 73.89 x 2 = 147.78
Holding 203/2 = 101.5 x (1,5 x 97%) = 147.68
Purchase 15,000 x (15 x 97%) = 218,250

Total Cost 218,545

500 – 5%

Reorder 15000/500 = 30 x 2 = 60
Holding 500/2 = 250 x (1,5 x 95%) = 356.25
Purchase 15000 x (15 x 95%) = 213,750

Total Cost 214,166

700 – 7%

Reorder 15000/700 = 21.43 x 2 = 42.86
Holding 700/2 = 350 x (1.5 x 93%) = 488.25
Purchase 15000 x (15 x 93%) =209,250

Total Cost 209, 781

700 has the lowest cost, that’s why it should be the Optimal Order Quantity – is my thinking correct? I would appreciate your opinion on it.

[Author]

Posts