Sensitivity of EOQ to changes in relevant ordering and carrying costs. Alyia Companys annual demand for Model
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Sensitivity of EOQ to changes in relevant ordering and carrying costs. Alyia Company’s annual demand for Model X253 is 10,000 units. Alyia is unsure about the relevant carrying cost per unit per year and the relevant ordering cost per purchase order. This table presents six possible combinations of carrying and ordering costs.
1. Determine EQU for Alyia for each of the relevant ordering and carrying-cost alternatives.
2. How does your answer to requirement 1 give insight into the impact on EOQ of changes in relevant ordering and carrying costs?
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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