Question: A) Calculate the operating cycle based on the following information: Sales = $87,833 COGS = $26,392 Inventory = $16,025 Accounts Receivable = $11,150 B) XYZ
A) Calculate the operating cycle based on the following information:
Sales = $87,833 COGS = $26,392 Inventory = $16,025 Accounts Receivable = $11,150
B) XYZ is a retailer and sells 147,000 units per year. It purchases from a single supplier. Fixed cost per order is $823 and carrying cost is $5 per unit.
Suppose XYZ orders 6,000 units per order from the supplier. What are the total costs (sum of carrying costs and shortage costs)?
C) XYZ is a retailer and sells 161,000 units per year. It purchases from a single supplier. Fixed costs per order are $806 and carrying cost is $12 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity?
Answers rounded 2 decimal places please.
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