Firm X faces regular demand of 150 units per month, it orders from its supplier at...
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Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of £25. Each order costs £32, and holding cost is 18% p.a. of the purchase price. Required (a) Calculate the economic order quantity, and the average inventory level. Calculate total inventory related cost at this economic order quantity. (b) Firm X faces regular demand of 150 units per month, it orders from its supplier at a purchase cost per unit of £25. Each order costs £32, and holding cost is 18% p.a. of the purchase price. Required (a) Calculate the economic order quantity, and the average inventory level. Calculate total inventory related cost at this economic order quantity. (b)
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Answer rating: 100% (QA)
a Economic Order Quantity 2AOC 218003245 11520045 25600 160 A... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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