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BACK Question 6 Larkspur Aviation uses specialty gaskets in the production of a small aeroplane, X.224. During a year, Larkspur uses 9,025 gaskets with an
BACK Question 6 Larkspur Aviation uses specialty gaskets in the production of a small aeroplane, X.224. During a year, Larkspur uses 9,025 gaskets with an average usage of 53 gaskets per day of production. The gaskets cost $45 each. Because the gaskets require some special handling, the carrying costs are $7.00 per gasket. The ordering costs are $14 per order. Currently, Larkspur Aviation is placing orders for 760 gaskets. However, some of these gaskets are being damaged due to limited availability of the needed special storage. Elastomers, Inc. is the supplier of the specialty gaskets and can usually fill an order in 2 days. Occasionally, Elastomers is backlogged, but they never take more than 3 days to fill an order. If Larkspur runs out of gaskets, production will stop. (a) Calculate the total ordering cost and carrying cost for the current order size. (Round answers to 2 decimal places, e.g. 125.74.) Ordering cost $ Carrying cost $ Total Cost $ Attempts: 0 of 3 used
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