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Working at a major food distribution center focusing on canned green beans. Green beans are a popular item at local food stores, and an analysis of data reveals the following: â—Ź Your warehouse purchases cans of beans from a wholesaler, and then sells directly to multiple food stores. Demand has been relatively constant at 16,000 cans of beans per month, and your supplier has an essentially unlimited production capacity. Each can of beans costs you $0.25 (this includes delivery costs); you sell the can of beans to local food stores for $0.50 It costs you $212 to submit an order Cost of capital (or discount rate) is 18% annual rate. (a) What is the optimal order size? (show work)

          Working at a major food distribution center focusing on canned green beans. Green beans are a popular item at local food stores, and an analysis of data reveals the following: â—Ź Your warehouse purchases cans of beans from a wholesaler, and then sells directly to multiple food stores. Demand has been relatively constant at 16,000 cans of beans per month, and your supplier has an essentially unlimited production capacity. Each can of beans costs you $0.25 (this includes delivery costs); you sell the can of beans to local food stores for $0.50 It costs you $212 to submit an order Cost of capital (or discount rate) is 18% annual rate. (a) What is the optimal order size? (show work)
        
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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Working at a major food distribution center focusing on canned green beans. Green beans are a popular item at local food stores, and an analysis of data reveals the following: â—Ź Your warehouse purchases cans of beans from a wholesaler, and then sells directly to multiple food stores. Demand has been relatively constant at 16,000 cans of beans per month, and your supplier has an essentially unlimited production capacity. Each can of beans costs you $0.25 (this includes delivery costs); you sell the can of beans to local food stores for $0.50 It costs you $212 to submit an order Cost of capital (or discount rate) is 18% annual rate. (a) What is the optimal order size? (show work)
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Transcript

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00:01 Hello students, we have a question, we are required to find out selling price for a unit.
00:07 So, the direct material is 920, direct labour cost is 1400, overhead is equal to 275.
00:23 How we got 275? t multiply 2 .8 plus 162000 divided by 60000 multiply 5.
00:40 This is how we got overhead...
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