Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Jim Manufacturing uses 2,600 units of a product per year on a continuous basis. The product carrying costs are $40 per year and ordering

image text in transcribed
4. Jim Manufacturing uses 2,600 units of a product per year on a continuous basis. The product carrying costs are $40 per year and ordering costs are $260 per order. It takes 22 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. (a) Calculate the economic order quantity (round up to the nearest whole unit.) (b) Calculate the total cost per year to order and carry this item. (C) Its supplier has notified Joe that if Joe increases its order quantity by 66 units, they will give it a discount. Calculate the dollar discount that the suppliers will have to give Joe Manufacturing to result in a net benefit to the company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting With QuickBooks Online

Authors: Donna Kay

3rd Edition

1264127278, 9781264127276

More Books

Students also viewed these Accounting questions

Question

Why is a Notice necessary before a meeting? Section B

Answered: 1 week ago