material costing problem
This query is : Resolved
19 April 2010
solve this question
Question: After inviting tenders, two quotations are received as under:
Supplier A- Rs. 2.20 per unit.
Supplier B- Rs. 2.10 per unit + Rs. 2,000 fixed charges irrespective of units ordered.
(i) Calculate the order quantity for which the purchase price per unit will be the same.
(ii) Select the supplier if the purchase officer wants to place an order for 15,000 units.
Question: After inviting tenders, two quotations are received as under:
Supplier A- Rs. 2.20 per unit.
Supplier B- Rs. 2.10 per unit + Rs. 2,000 fixed charges irrespective of units ordered.
(i) Calculate the order quantity for which the purchase price per unit will be the same.
(ii) Select the supplier if the purchase officer wants to place an order for 15,000 units.
19 April 2010
(I) ANS:-
ORDER QUANTITY FOR WHICH PURCHASE COST WILL BE SAME= 2000/(2.20-2.10)=20000 UNITS.
SUP A=(20000*2.20)=RS44000
SUP B=(20000*2.10)+2000=RS.44000
ORDER QUANTITY FOR WHICH PURCHASE COST WILL BE SAME= 2000/(2.20-2.10)=20000 UNITS.
SUP A=(20000*2.20)=RS44000
SUP B=(20000*2.10)+2000=RS.44000
19 April 2010
(II) ANS:-
AT 15000 ORDER QTY;-
SUP A=(15000*2.20)=RS 33000/-
SUP B=(15000*2.10)+2000=RS 33500/-
SUP A WILL BE SELECTED.
NOTE:- FOR ORDERINGS ANY QTY BELOW 20000 UNIT SUP A IS BEST ABOVE 20000 UNIT SUP B IS BEST.
AT 15000 ORDER QTY;-
SUP A=(15000*2.20)=RS 33000/-
SUP B=(15000*2.10)+2000=RS 33500/-
SUP A WILL BE SELECTED.
NOTE:- FOR ORDERINGS ANY QTY BELOW 20000 UNIT SUP A IS BEST ABOVE 20000 UNIT SUP B IS BEST.
19 April 2010
Thanks for answer
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- Multiple payment of self assessment tax for A Y 2025-2026
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- REGARDING ITR FILING QUESTION
- DUE DATE FOR ITR FILING
- Sale of Mutual Funds In Diffirent Financial Years
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- GST ISD Query on various AMCs
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
