material costing problem
This query is : Resolved
19 April 2010
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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
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