Question
Gilmore Company has material that has a P7 per meter carrying cost per year. This textile is used at a rate of 25,000 meters per
Gilmore Company has material that has a P7 per meter carrying cost per year. This textile is used at a rate of 25,000 meters per year, and ordering costs are P5 per order.
a.What is the economic order quantity for this fabric?
b.What are the annual inventory costs for this company if it orders in this quantity?
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International Accounting
Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera
5th edition
1259747980, 9781259747984, 1260466531, 978-1260466539
