Question
Assume a car dealer has demand for 1,000 cars per year. The unit purchase cost is $20,000. The fixed cost for each order of cars
Assume a car dealer has demand for 1,000 cars per year. The unit purchase cost is $20,000. The fixed cost for each order of cars is $5,000. It takes 2.5 weeks to receive an order. The holding cost equals 5% of the unit purchase cost per car per year (assume 12 months per year and 4 weeks per month).
a. How many cars should the dealer buy per order?
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Accounting Concepts And Applications
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain
10th Edition
0324376154, 978-0324376159
