ABC Inc. orders components for distribution at a monthly demand of900units. Holding costs are15%of the unit cost

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ABC Inc. orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. The ordering cost is $47.35. The company operates 240 days per year

a. If the company wishes to effectively procure these components, what would be the optional amount to order?

b. What is the average inventory?

c. How many order cycles are there per year?

d. What are the total cost of managing the inventory? $

e. What is the total cost, including the cost of the inventory?

Related Book For answer-question

Managerial Accounting

ISBN: 978-1119158011

6th edition

Authors: James Jiambalvo

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Posted Date: Dec 29, 2023 02:14 AM

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ABC Inc. orders components for distribution at a monthly demand of900units. Holding costs are15%of the unit cost

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Managerial Accounting

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