Question
Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of 25. Each
Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of 25. Each order costs 32, and holding cost is 18% p.a. of the purchase price. Required (a) Calculate the economic order quantity, and the average inventory level. Calculate total inventory related cost at this economic order quantity. (b)
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a Economic Order Quantity 2AOC 218003245 11520045 25600 160 A...Get Instant Access to Expert-Tailored Solutions
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
11th Edition
111856667X, 978-1118566671
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