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PLEASE URGENT XYZ COMPANY NEEDS TO PURCHASE 600,000 UNITS IN 2023 FROM ITS SUPPLIER. ORDER COSTS ARE $25 PER ORDER, AND CARRYING COSTS ARE $23/UNIT
PLEASE URGENT
XYZ COMPANY NEEDS TO PURCHASE 600,000 UNITS IN 2023 FROM ITS SUPPLIER. ORDER COSTS ARE \$25 PER ORDER, AND CARRYING COSTS ARE \$23/UNIT PER YEAR. XYZ COMPANY HAS A HURDLE RATE OF 8%, AND THE UNITS THAT XYZ PURCHASES FROM ITS SUPPLIER COST \$400/UNIT. 19. What is the EOQ for X? Company? a. 539 units. b. 639 units. c. 739 units. d. 839 units. 20. What is the total relevant cost (ordering cost + carrying cost) for the year for XYZ Company at an order size equal to 1000 units? a. $42,500 b. $43,000 c. $43,500 d. $44,000 Step by Step Solution
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