Question
Micro-Encapsulator Corp. (MEC) expects to sell 14,400 miniature home encapsulators this year. The cost of placing an order from its supplier is $240. Each
Micro-Encapsulator Corp. (MEC) expects to sell 14,400 miniature home encapsulators this year. The cost of placing an order from its supplier is $240. Each unit costs $48.00 and carrying costs are 40% of the purchase price. a. What is the economic order quantity? (Round your answer to the nearest whole value.) 200 units b. What are total costs-order costs plus carrying costs of inventory over the course of the year? (Round your answer to the nearest whole dollar.) Total costs of inventory
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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