Question

Concord corporation has old inventory on hand that cost $27750. Its scrap value is $37000. The inventory could be sold for $92500 if manufactured further at an additional cost of $27750. What should concord do?

Answer 1

Abc corporation has got a demand for particular part at 10,000 units per year. The cost per unit is rs.2 and it costs rs.36 tAbc corporation has got a demand for particular part at 10,000 units per year. The cost per unit is rs.2 and it costs rs.36 to place an order and to process the delivery. The inventory carrying cost is estimated at 9% of average inventory investment. Determine (i) economic order quantity, (ii) optimum number of orders to be placed per annum, (iii) average annual ordering cost, (iv) average annual carrying cost and (v) minimum total cost of inventory per annum.o place an order and to process the delivery. The inventory carrying cost is estimated at 9% of average inventory investment. Determine (i) economic order quantity

(ii) optimum number of orders to be placed per annum, (iii) average annual ordering cost, (iv) average annual carrying cost and (v) minimum total cost of inventory per annum.

Answer 2

Sunland Company has old inventory on hand that cost $15,750. Its scrap value is $21,000. The inventory could be sold for $52,500 if manufactured further