Question
Consider the following data supplied by Cotton Tops, a t-shirt distributor: Annual sales: 26,000 shirts per year Carrying costs per shirt: $1.23 Purchase price per
Consider the following data supplied by Cotton Tops, a t-shirt distributor:
Annual sales: | 26,000 shirts per year |
Carrying costs per shirt: | $1.23 |
Purchase price per shirt: | $4.92 |
Equipment set up costs: | $1,000 |
Given that the manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt, calculate the economic order quantity if sales increased by 100%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
