This scenario pertains to the next three questions. Hum-R-Us sells 200 Bieber Mugshot mugs per day,...

 

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This scenario pertains to the next three questions. Hum-R-Us sells 200 Bieber Mugshot mugs per day, 365 days per year. The wholesale unit cost is $3.65 and the mugs retail for $10.95. The company uses a standard 10% holding cost rate to represent the annual cost of the opportunity cost of money, storage, breakage and obsolescence, so a single mug costs $0.365 per year or $0.001 per day to carry in inventory. The fixed cost associated with placing an order, which includes staff member time and the fixed portion of delivery cost, has been estimated to be $40. Question 1 What is the economic order quantity for Bieber Mugshot mugs? 1 pts This scenario pertains to the next three questions. Hum-R-Us sells 200 Bieber Mugshot mugs per day, 365 days per year. The wholesale unit cost is $3.65 and the mugs retail for $10.95. The company uses a standard 10% holding cost rate to represent the annual cost of the opportunity cost of money, storage, breakage and obsolescence, so a single mug costs $0.365 per year or $0.001 per day to carry in inventory. The fixed cost associated with placing an order, which includes staff member time and the fixed portion of delivery cost, has been estimated to be $40. Question 1 What is the economic order quantity for Bieber Mugshot mugs? 1 pts

Answer rating: 100% (QA)

Annual Demand D 200365 73000... View the full answer