material costing problem
This query is : Resolved
Varun Jain
(Querist)
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.
Varun Jain
(Querist)
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
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
