Question
2. A retailer of a particular product has estimated its annual sales of the product at 38,000 per year. Its purchase cost is $4. The
2. A retailer of a particular product has estimated its annual sales of the product at 38,000 per year. Its purchase cost is $4. The Order cost is $9 per order. Inventory holding costs are 25% of the wholesale cost.
a)What is the EOQ?
b)What is the total annual cost?
c)Suppose L= 3 days and the firm is open 5 days/week. Calculate the reorder point.
d)What is the average order interval?Step by Step Solution
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College Accounting Chapters 1-24
Authors: Tracie L Nobles, Cathy Scott
11th Edition
1111528306, 978-1111528300
