based on the following data is a lot of 1000, 3000,6000 or 12000 units the most economical to manufacture?
setup cost : rs 300,
value : rs0.04 per unit,
carrying cost : 20% of value of average inventory,
storage costs : rs0.03 per unit per year,
consumption minimum safety : 12000 units per year,
stock at hand : 1000 units.
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Answer:
The bank wants to know the productwise total cost per unit for the selected activities ... data is given to you for a period: P Q Rs./u of P Rs./ of Q Direct Materials 20 25 ... and 1,000 units of crude R. For' each unit of A, refinery receives Rs. 60 while for ... the factory overhead recovery rate based on normal value of closing stock ...
Explanation:
Annual demand for an item is 4800 units. ordering cost is Rs 500/- per order. inventory carrying cost is 24% of the purchase price per unit.
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