Economic Order Quantity Refer to the data in Exercise 21-1. Required: 1. Compute the economic order quantity.

Question:

Economic Order Quantity Refer to the data in Exercise 21-1.

Required:

1. Compute the economic order quantity.

2. Compute the ordering and carrying costs for the EOQ.

3. How much money does using the EOQ policy save the company over the policy of purchasing 5,000 plastic housing units per order?

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Cost Management Accounting and Control

ISBN: 978-0324559675

6th Edition

Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan

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Question Posted: Mar 29, 2012 05:50 AM

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Economic Order Quantity Refer to the data in Exercise 21-1. Required: 1. Compute the economic order quantity.

Question:

Step by Step Answer:

1 2 Ordering cost P X DQ 40 X 40000800 2000 Carrying cost CQ2 5 X 8002 2000 To...View the full answer

Cost Management Accounting and Control

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