If the normal cost per unit is $ 45, the ordering cost per order is $70; the

Fantastic news! We've Found the answer you've been seeking!

Question:

If the normal cost per unit is $ 45, the ordering cost per order is $70; the annual demand is 2500 units, and the holding cost is 55% of the cost per unit. What order quantity will minimize the total inventory cost?

Related Book For answer-question

Quantitative Methods For Business

ISBN: 978-0273739470

5th edition

Authors: Donald Waters

See More Books

Posted Date: Oct 19, 2020 04:04 AM

See More Questions

A company begins a review of ordering policies for its continuous review system by checking the cur- rent policies for a sample of SKUS. Following are the characteristics of one item. 3 Demand (D) =...
a. SMC recently re-named itself from Silo Manufacturing Corporation to give the impression they were a modern manufacturer. Located in Blacksburg, Virginia, SMC is a regional provider of grain...
What approach does JIT take to minimize total inventory costs?
Using Figure 11.25 and the related text, describe the features of terracing, and list the major alterations to soil and water brought about by this agricultural method. Figure 11.25
Smead Jolly is a U.S. investor who has the opportunity to convert $1 into 130 Japanese yen and 1.90 German marks. Given this information, into how may yen should Smead be able to convert one mark?
Explain how an initial increase in government purchases can increase GDP by a greater amount than the increase in government spending.
A tension test was performed on a steel specimen having an original diameter of 12.5mm and gage length of 50mm. Using the data listed in the table, plot the stress-strain diagram, and determine...
Evelynn Company issued $300,000, 8%, 10-year bonds on January 1, 2014, for $321,319. This price resulted in an effective-interest rate of 7% on the bonds. Interest is payable semiannually on July 1...
One of the biggest differences between civil law and criminal law is the burden of proof. Now it's time for you to explain the difference. Ina three paragraph essay, explain the difference in the...
Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...
A financial institution issues a guaranteed investment contract for $10,000 to its customers, which has a 6-year maturity and a guaranteed interest rate of 5% per year. The institution wants to fund...
Selected information from the separate and consolidated balance sheets and income statements of Gold corp. and its subsidiary, Silver Inc., as of December 31, 2017, and for the year then ended is as...
The cash flows from ________ section is completed by reviewing the longterm liabilities and equity sections of the Balance Sheet. Question content area bottom Part 1 A. investing activities B....
Common stockholders' profitability analysis A company reports the following: Net income Preferred dividends Average stockholders' equity $295,000 11,800 2,543,103 1,514,439 Average common...
Total sukuk issuance of 2,000 units at par value of RM1,000 each. The sukuk was sold at RM1,245 per bond, maturing in 20 years, annual coupon of 6%, and to be redeemed for RM1,000 upon maturity. ...
PCR Pte Ltd is a company based in Singapore and sells health diagnostic kits. It refers t the SFRSS when preparing its financial statements. Its financial year-end is 31 December and it does annual...
Fauver Enterprises declared a 2-for-1 stock split last year, and this year its dividend is $0.90 per share. This total dividend payout represents a 12% increase over last year's pre-split total...
The manager of a local convenience store is expanding his line of small toy items. To price these new items, the manager is looking at the prices being charged by competing retailers in his area. For...
Some software packages - or special add-ins for spreadsheets - draw decision trees automatically. Do a small survey to see what features these contain. You can also draw a decision tree on a standard...
Use multiple regression to find the line of best fit through the following data. What does this tellyou? y 420 520 860 740 510 630 650 760 590 680 a 1 2 3 45 6 789 10 b 3 79 3 6 29 6 6 c 23 15 64 52...
Use a computer to generate a set of random numbers. Use these to design a sampling scheme to find the views of passengers using a low-cost airline.
Is the word anxiety a candidate for creating a stable pattern? If so, give reasons.
Define the real meaning of anxiety. What are the different meanings of this word?
Can you list six important benefits of this pattern?

If the normal cost per unit is $ 45, the ordering cost per order is $70; the

Question:

Expert Answer:

Quantitative Methods For Business

Students also viewed these accounting questions