Company ABC manufactures and sells various vehicle engines and parts. One part the company regularly purchases...

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Company ABC manufactures and sells various vehicle engines and parts. One part the company regularly purchases is engine valve A1100. Estimated Sales for this year: Part 1: Carrying Costs Below are the estimated carrying costs for A1100. Valve A1100 Annual unit cost of storage Insurance expense per unit Interest expense per unit Average theft cost per unit Material handling expense Total Carrying Cost per Unit: $ $ $ $ $ 100 units 8.50 i 2.70 ! 3.50! 1.00 Also called inventory gap 1.50 i 1. Add up the total carrying cost per unit in the yellow cell above. 2. Complete the total carrying cost chart below by calculating the yellow cells at the various order size levels: Order Size 1 5 10 20 50 100 Total Average Carrying Inventory Cost 3. Create a graph of the carrying costs below (use a XY Scatter with Straight Lines & Markers). Make sure to add axis titles: Cost to x-axis and Order Size (in units) to y-axis. Company ABC manufactures and sells various vehicle engines and parts. One part the company regularly purchases is engine valve A1100. Estimated Sales for this year: Part 1: Carrying Costs Below are the estimated carrying costs for A1100. Valve A1100 Annual unit cost of storage Insurance expense per unit Interest expense per unit Average theft cost per unit Material handling expense Total Carrying Cost per Unit: $ $ $ $ $ 100 units 8.50 i 2.70 ! 3.50! 1.00 Also called inventory gap 1.50 i 1. Add up the total carrying cost per unit in the yellow cell above. 2. Complete the total carrying cost chart below by calculating the yellow cells at the various order size levels: Order Size 1 5 10 20 50 100 Total Average Carrying Inventory Cost 3. Create a graph of the carrying costs below (use a XY Scatter with Straight Lines & Markers). Make sure to add axis titles: Cost to x-axis and Order Size (in units) to y-axis.

Answer rating: 100% (QA)

1In the first question the total carrying cost per unit in the yellow cell can be calculated by adding up all the individual carrying costs listed in ... View the full answer