Question: Please show all work. Make sure to show how to get each of the numbers. The following inventory data have been established for the Thompson

Please show all work. Make sure to show how to get each of the numbers.

Please show all work. Make sure to show how to get each

of the numbers. The following inventory data have been established for the

The following inventory data have been established for the Thompson Company: Orders must be placed in multiples of 100 units. Annual sales are 338,000 units. The purchase price per unit is $6. Carrying cost is 20 percent of the purchase price of goods. . Fixed order cost is $48. Three days are required for delivery To avoid shortages, the company will maintain safety stocks equal to 2 days usage (sales)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!