Business, 23.04.2021 21:50 nacariahearns
Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs or barrels. A jug contains one gallon, while a barrel contains 55 gallons. The price per gallon is the same with either container. Vetox is charged a fixed amount per order whether it purchases jugs or barrels. The inventory holding cost per gallon per month is the same with either jugs or barrels. Vetox chooses an order quantity to minimize ordering and holding costs per year. Would Vetox purchase a greater number of gallons with each order if it purchased with jugs or with barrels?
A. They would order a greater number of gallons with barrels.
B. They would order the same number of gallons with either container.
C. They would order a greater number of gallons with jugs.
D. They might order a greater number of gallons with jugs or with barrels, depending on various factors like the demand rate, ordering cost, and holding cost.
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Vital industries manufactured 2 comma 200 units of its product huge in the month of april. it incurred a total cost of $ 121 comma 000 during the month. out of this $ 121 comma 000, $ 46 comma 000 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. ryan had no opening or closing inventory. what will be the total cost per unit of the product, assuming conversion costs contained $ 10 comma 900 of indirect labor?
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Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs or barrels. A...
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