Two quotations of different suppliers are received Supplier A Rs 2 20 per unit Supplier B Rs 2 10 pe...........

Costing - Phase (I & II) Overview of Cost and Management Accounting

Two quotations of different suppliers are received:

Supplier A: Rs. 2.20/- per unit

Supplier B: Rs. 2.10 per unit + Rs. 2000/- fixed charges irrespective of units ordered

Calculate the order quantity for which purchase price per unit will be same?

10,000 units

20,000 units

30,000 units

40,000 units

Let quantity ordered is ‘’a’’

So, 2.20 a = 2.10 a + 2000

a = 20,000 units

If we place order of 20,000 units’ bill of both suppliers will be same.

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