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Please assist with the following question. Thank you in advance :) 4. (5 marks) 'Ihe Milling Corp. has developed a new type Of widget. The
Please assist with the following question. Thank you in advance :)
4. (5 marks) 'Ihe Milling Corp. has developed a new type Of widget. The local distributor expects to increase his sales by 20% over the past year due to this new development. year's sales were $50,000 at a selling price Of $100 unit. The manager would like to cut costs as much as possible and comes to you for advice. Relevant cost information includes: Warehouse space Material handling expense Insurance premium Total ordering cost S2.50,runit $1.50/unit .00/unit $100.00/per order a)What is Milling Corp. 's economic order quantity? b)what is the amount of average inventory?
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