Question
The following inventory data have been established for the Thompson Company: (1) Orders must be placed in multiples of 100 units. (2) Annual sales are
The following inventory data have been established for the Thompson Company:
(1) Orders must be placed in multiples of 100 units.
(2) Annual sales are 338,000 units.
(3) The purchase price per unit is $6.
(4) Carrying cost is 20 percent of the purchase price of goods.
(5) Fixed order cost is $48.
(6) Three days are required for delivery.
At what inventory level should an order be made?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
