Question
Micro-Encapsulator Corp. (MEC) expects to sell 23,040 miniature home encapsulators this year. The cost of placing an order from its supplier is $125. Each unit
Micro-Encapsulator Corp. (MEC) expects to sell 23,040 miniature home encapsulators this year. The cost of placing an order from its supplier is $125. Each unit costs $25 and carrying costs are 25% of the purchase price.
What is the economic order quantity?
What are total costs - order costs plus carrying costs - of inventory over the course of the year?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
