Jacks Tracks sells 24,000 custom-designed GoKarts per year. These GoKarts are sold evenly throughout the year. The
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Jack’s Tracks sells 24,000 custom-designed GoKarts per year. These GoKarts are sold evenly throughout the year. The manufacturer charges Jack a $50 processing cost per order, and Jack incurs a carrying cost of $240 per year including storing each GoKart at a local warehouse. What is the economic order quantity for ordering materials?
a. 100
b. 1,000
c. 2,000
d. 10,000
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a 100 the lower the cost of ordering the larger the order quantity will be Economic order quantit...View the full answer
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Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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