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You have been hired to instalf an inventory control system for Dooly Company. Among the inventory control features that Dooly wants are indicators of how
You have been hired to instalf an inventory control system for Dooly Company. Among the inventory control features that Dooly wants are indicators of how much to order and when. The following information is furnished for one item, called a duasonic, that is carried in inventory: a Duosonics are sold by the gross ( 12 dozen, or 144 ) at a list price of $800 per gross, FOB shipper. Dooly receives a 40% trade discount off list price on purchases in gross lots. b. Freight cost is $20 per gross from the shipping point to Dooly's plant. c. Dooly uses about 5.000 duosonics during a 259 -day production year but must purchase a total of 36 gross per year to
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