Accountancy, asked by anushkachowta, 7 months ago

A precision Engineering Factory consumes 50,000 units of a component per year. The ordering, receiving and handling costs are Rs.3 per order while the tracking costs are Rs.12 per order. Further details are as follows: Interest cost Rs.0.06 per unit per year. Storage cost Rs.1000 per year for 50,000 units. Deterioration and obsolescence cost Rs.0.004 per unit per year. Calculate the Economic Order Quantity

Answers

Answered by vskrishnan2009
1

Answer:

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Explanation:

Answered by knjroopa
0

Explanation:

Given A precision Engineering Factory consumes 50,000 units of a component per year. The ordering, receiving and handling costs are Rs.3 per order while the tracking costs are Rs.12 per order. Further details are as follows: Interest cost Rs.0.06 per unit per year. Storage cost Rs.1000 per year for 50,000 units. Deterioration and obsolescence cost Rs.0.004 per unit per year. Calculate the Economic Order Quantity

  • So the details are given as follows. We need to find the Economic Order Quantity
  • Carrying cost per unit per year                                              Rs 0.060
  • Deterioration and obsolescence cost per unit per year     Rs 0.004
  •  Storage cost for Rs 1000  
  •  per year for 50,000 units (1000 / 50,000) per year            Rs 0.020
  •                                                  So Total  will be                      Rs 0.084

Reference link will be

https://brainly.in/question/12551282

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