1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 8.03 X +(s 8.03 Xx Purchase orders) 8.03 Xx Nonstandard orders) 2. If McGarvey Manufacturing Company estimates that next month will have 490 total purchase orders and 42 nonstandard orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if McGarvey Manufacturing wants to estimate purchasing cost for the coming year and expects 6,000 purchase orders and 500 nonstandard orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) 23,507 X What is the total fixed purchasing cost?
1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 8.03 X +(s 8.03 Xx Purchase orders) 8.03 Xx Nonstandard orders) 2. If McGarvey Manufacturing Company estimates that next month will have 490 total purchase orders and 42 nonstandard orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if McGarvey Manufacturing wants to estimate purchasing cost for the coming year and expects 6,000 purchase orders and 500 nonstandard orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) 23,507 X What is the total fixed purchasing cost?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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