Question: The following inventory data have been established for Limitless Inc. (1) Annual sales are 150,000 units. (2) The purchase price per unit is $3. (3)

The following inventory data have been established for Limitless Inc.
(1) Annual sales are 150,000 units.
(2) The purchase price per unit is $3.
(3) Carrying cost is 5% percent of the purchase price of goods.
(4) Cost per order placed is $12.
(5) Desired safety stock is 30 days supply.
(6) Use 365 days.
Use this data to compute:
(a) EOQ
(b) Safety stock
(c) Average Inventory
(d) Maximum Inventory
(e) Total inventory cost

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!

Q:

What are the two steps in commercialization?

Q:

The following inventory data has been established for company XYZ. Orders must be placed in multiples of 100 units Annual sales are 338, 000 units Purchase price per unit is P3 Carrying cost is 20%...

Q:

handwritten is also accepted but please let it be neat.need help asap Question 2 a) The treasurer of Alamanda Berhad has projected the cash flows of Projects A, and B: Year 0 1 2 Project A -RM150,000...

Q:

Start with the partial model in the file Ch28 P03 Build a Model.xls on the textbook?s Website. The following inventory data have been established for the Adler Corporation.(1) Orders must be placed...

Q:

The following inventory data have been established for the Adler Corporation. (1) Orders must be placed in multiples of 100 units. (2) Annual sales are 338,000 units. (3) The purchase price per unit...

Q:

The following inventory data have been established for the Thompson Company: (1) Orders must be placed in multiples of 100 units. (2) Annual sales are 338,000 units. (3) The purchase price per unit...

Q:

The following inventory data have been established for the Thompson Company: Annual sales are 338,000 units and orders must be placed in multiples of 100 units. The purchase price per unit is KES 600...

Q:

Please answer all the following questions down below. Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the products...

Q:

Please answer all the following questions down below. Royal Lawncare Company produces and sells two packaged productsWeedban and Greengrow. Revenue and cost information relating to the products...

Q:

Where do you get the allocated overhead in part 4 requirement 2 Requirement 1 Units Price Sales Variable Costs Fixed Costs Net Income Totals 60,000 60,000 $12.50 $6.00 Variable Cost Direct Materials...

Q:

Hi, I am having trouble trying to figure out how to write my memo to management in this Hampshire Company case study. It needs to be 3 to 4 pages long in APA style format. The teacher wanted us to...

Q:

Adidas Promotional Retail Operations, Inc., Sports Chalet, and Offside Soccer (Adidas) are California retailers that sell athletic shoes made from the hides of the red kangaroo, the eastern grey...

Q:

Grower, Inc. is a manufacturer of a plastic products which uses the account analysis method and has the following information pertaining to current year operations. Cost of goods sold Store manager's...

Q:

As the discount/interest rate increases, the present value of an amount to be received at the end of a fixed period Question 2Select one: a. increases. b. decreases. c. remains the same. d. not...

Q:

Soft Touch Company was started several years ago by two golf instructors. The companys comparative balance sheets and income statement are presented below, along with additional information. Current...