QUESTION

ABC Company sells 2,403 chairs a year at an average price per chair of $144. The carrying cost per unit is $32.24. The company orders 574 chairs at a time and has a fixed order cost of $103.6 per order. The chairs are sold out before they are restocked. What are the total shortage costs?

Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

QUESTION

ABC Company sells 3,307 chairs a year at an average price per chair of $144. The carrying cost per unit is $28.96. The company orders 500 chairs at a time and has a fixed order cost of $37 per order. The chairs are sold out before they are restocked. What is the economic order quantity?

Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.