Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Demand for an item is constant at 50 units a year. Unit cost is $25, reorder cost is $20 and holding cost is 40 per

Demand for an item is constant at 50 units a year. Unit cost is $25, reorder cost is $20 and holding cost is 40 per cent of value a year. Any demand that occurs when no stock remains is lost. What is the minimum selling price that makes it protable to stock the item? Choose the nearest answer.

$13.83

$30.83

$33.83

$27.83

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

OM operations management

Authors: David Alan Collier, James R. Evans

5th edition

1285451376, 978-1285451374

More Books

Students also viewed these General Management questions

Question

How do the charges on opposing plates of a capacitor compare?

Answered: 1 week ago