Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Company sells 2,806 chairs a year at an average price per chair of $170. The carrying cost per unit is $45.85. The company orders

ABC Company sells 2,806 chairs a year at an average price per chair of $170. The carrying cost per unit is $45.85. The company orders 547 chairs at a time and has a fixed order cost of $57 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?

Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

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

Financial Modeling

Authors: Simon Benninga

4th Edition

0262027283, 9780262027281

More Books

Students also viewed these Finance questions

Question

Why do you want to be a clinical psychologist?

Answered: 1 week ago

Question

calculate and explain the meaning of expected values; LO1

Answered: 1 week ago

Question

explain the implications of portfolio analysis. LO1

Answered: 1 week ago