ABC company makes 52 orders of chairs in a year and orders 108 chairs each time. The
Fantastic news! We've Found the answer you've been seeking!
Question:
ABC Company used an investment bank to do IPO. In IPO, the company sold 22,973 shares at $60 each. The investment bank charged 7% spread. At the end of the 1st day of trading, ABC's stock price closed at $93.
ABC Company sells 47,427 chairs a year. The carrying cost per unit is $7.99 and the fixed costs per order are 106.2 per order. The company orders 324 units each time. The chairs are sold out before they are restocked. What is the economic order quantity?
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date: