Sarahs Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is
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Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1,200 kg of palm oil per day on average. The supplier charges a $62 delivery fee per order (which is independent of the order size) and $5.00 per kg. Sarah’s annual holding cost is 15 percent. Assume she operates and sells five days per week, 52 weeks per year.
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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