Alpha Enterprise sells electrical equipments, and orders its component parts from Beta Company. Alpha orders 11628...
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Alpha Enterprise sells electrical equipments, and orders its component parts from Beta Company. Alpha orders 11628 component parts per year from Beta, at $36 per component part. Beta Company incurs all shipping costs. Alpha earns 20% on its cash investments. The purchase-order lead time is 3 weeks. Alpha works for 48 weeks in a year. The following information is relevant to Alpha Enterprise: Relevant ordering costs per purchase order $44.75 Relevant carrying cost, including insurance, materials handling, breakage, and so on, per unit $5.51 Compute the economic order quantity (EOQ) for Alpha Enterprise. Alpha Enterprise sells electrical equipments, and orders its component parts from Beta Company. Alpha orders 11628 component parts per year from Beta, at $36 per component part. Beta Company incurs all shipping costs. Alpha earns 20% on its cash investments. The purchase-order lead time is 3 weeks. Alpha works for 48 weeks in a year. The following information is relevant to Alpha Enterprise: Relevant ordering costs per purchase order $44.75 Relevant carrying cost, including insurance, materials handling, breakage, and so on, per unit $5.51 Compute the economic order quantity (EOQ) for Alpha Enterprise.
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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