Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flounder Ltd. uses 3,240 metres of fine gage brass each year. Brass wire costs $12 per metre, ordering costs are $63 per order, and carrying

image text in transcribed

Flounder Ltd. uses 3,240 metres of fine gage brass each year. Brass wire costs $12 per metre, ordering costs are $63 per order, and carrying costs are $3.15 per metre. Currently, Flounder orders 600 metres in each order. Is this the most economical order size? If not, what is the economic order quantity? How much will Flounder save using the EOQ? (Round answers to 2 decimal places, e.g. 125.74.) Economic order quantity metres Flounder will save per year

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

Financial Accounting An International Introduction

Authors: David Alexander, Prof Christopher Nobes, Chris W. Nobes

4th Edition

027372164X, 978-0273721642

More Books

Students also viewed these Accounting questions

Question

2 To what extent does their relevance vary internationally?

Answered: 1 week ago

Question

8 What can HRM do to manage diversity?

Answered: 1 week ago

Question

7 How should HRM practitioners approach conflict in the workplace?

Answered: 1 week ago