The Fill-er-Up gas station has found that demand for its unleaded gasoline is fairly constant and uniform
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The Fill-er-Up gas station has found that demand for its unleaded gasoline is fairly constant and uniform at the rate of 100,000 gallons per year. Fill-er-Up must pay $100 for shipping per order of gasoline, which it buys for $3.75/gallon. Inventory carrying cost is 10% of unit cost per year. How many gallons should be ordered at a time?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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