Question: 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

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 is $6.

(4) Carrying cost is 20 percent of the purchase price of goods.

(5) Fixed order cost is $48.

(6) Three days are required for delivery.

At what inventory level should an order be made?

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