Question
Careful Ordering Company uses 810 units of a part each year. The cost of placing one order is $10; the cost of carrying one unit
Careful Ordering Company uses 810 units of a part each year. The cost of placing one order is $10; the cost of carrying one unit in inventory for a year is $4. The company has decided to begin ordering 60 units at a time. What is the average annual ordering cost of this new policy?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
