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all information is available Answer for requirement 1: D Requirement 2: C please andwer the rest Exercise Five (10 Points): The following information has been

all information is available
Answer for requirement 1: D
Requirement 2: C
please andwer the rest
image text in transcribed
Exercise Five (10 Points): The following information has been gathered for Product ABC Annual demand (units) 760 Purchase price per unit 5300 Orders per year 10 Average daily demand (units) 25 Lead time in days 10 Cost of placing an order $ 40 Relevant insurance, handling, etc., costs 58 Required return 1096 Required: 1. What is the economic order quantity for Product ABC? A) 9 units Calculation B) 10 units C) 20 units D) 40 units E) 46 units Answer: 2. What are the annual carrying costs for Product ABC if the company orders at the EOQ amount? A) 580 Calculation B) 5320 C) 5760 D) 5160 E) $1,520 Answer 3. What are the annual ordering costs for Product ABC if the company orders at the EOQ amount? A) 5320 Calculation B) 5160 C) 51,520 D) 580 E) 5760 Answer: Calculation 4. What is the reorder point for Product ABC? A) 38 B) 25 C) 30 D) 80 E) 100

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