Minimum Re-order level of inventory levels
Give a brief introduction of the term Minimum Re-order level of inventory levels?
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This level is fixed between minimum and maximum level in such a manner that the needs of materials for the production can be met appropriately until the new supply of material is received. This level of material stock points to that step must be taken for procurement of additional lots of material.
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Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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