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Myer Holdings Ltd. sells baby comforters. Bird Ltd. manufactures many different baby comforters. Myer Holdings Ltd. orders 21,200 baby comforters per year. 408 per week,
Myer Holdings Ltd. sells baby comforters. Bird Ltd. manufactures many different baby comforters. Myer Holdings Ltd. orders 21,200 baby comforters per year. 408 per week, at $10 per comforter. Bird Ltd. covers all shipping costs. Myer Holdings Ltd. earns 20% on its cash investments. The purchase-order lead time is 2 weeks. Myer Holdings Ltd. sells 320 baby comforters per week. The following data are available (based on management's estimates): Estimated ordering costs per purchase order $23 Estimated insurance, materials handling, breakage, and so on, per year $7 Actual ordering costs per order $27 What is the economic order quantity using the estimated amounts? a. 493.8 baby comforters b.329.2 baby comforters OC 232.8 baby comforters Od. 698.3 baby comforters
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