Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year, Preparing an order and receiving a shipment

image text in transcribed
A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year, Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag a. Determine the economic order quantity. (Round your final answer to the nearest whole number.) Economic order quantity bags b. What is the average number of bags or hand? (Round your final answer to the nearest whole number.) Average number of bags c. How many orders per year will there be? (Round your final answer to the nearest whole number.) Number of orders per year d. Compute the total cost of ordering and carrying flour (Round your final answer to the nearest whole number. Omit the "$" sign in your response.) Total cost e. If annual holding costs were to increase by $9 per bag, how much would that affect the minimum total annual cost? (Round your Intermediate calculations to 2 decimal places and final answer to 2 decimal places. Omit the "$" sign in your response.) Tences Increase by

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

Step: 3

blur-text-image

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

Cases in Financial Reporting

Authors: Michael J. Sandretto

1st edition

538476796, 978-0538476799

More Books

Students also viewed these Finance questions

Question

10. Outline the elements of breakdown for a special event.

Answered: 1 week ago