Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following data supplied by Cotton Tops, a t-shirt distributor: Annual sales: 26,000 shirts per year Carrying costs per $1.23 shirt: Purchase price $4.92
Consider the following data supplied by Cotton
Tops, a t-shirt distributor:
Annual sales:
26,000 shirts per year
Carrying costs per $1.23
shirt:
Purchase price
$4.92
per shirt:
Equipment set up $1,000
cOsts:
Given that the manager charges equipment setup 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%.
O 10,000
O 4
0 9.195
O 8,000
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