Annual demand for an item is 35,000 units. The holding cost rate is 15% of the item cost. Ordering costs are $25 per order. Quantity discounts are available according to the schedule below:
Quantity Price per Unit ($)
1-99 80.00
100-299 79.50
300-399 79.25
400+ 79.00
Requried:
a. What is the optimal order quantity? If necessary, round to the nearest whole number.
b. From the previous problem, what is the total annual cost of your policy?
Answers: 1
Another question on Business
Business, 21.06.2019 18:30
Beta coefficients and the capital asset pricing model personal finance problem katherine wilson is wondering how much risk she must undertake to generate an acceptable return on her porfolio. the risk-free return currently is 4%. the return on the overall stock market is 14%. use the capm to calculate how high the beta coefficient of katherine's portfolio would have to be to achieve a portfolio return of 16%.
Answers: 2
Business, 22.06.2019 05:50
Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes
Answers: 2
Business, 22.06.2019 12:50
Kendrick is leaving his current position at a company, and charlize is taking over. kendrick set up his powerpoint for easy access for himself. charlize needs to work in the program that is easy for her to use. charlize should reset advanced options
Answers: 3
Business, 22.06.2019 17:40
Within the relevant range, if there is a change in the level of the cost driver, then a. total fixed costs will remain the same and total variable costs will change b. total fixed costs will change and total variable costs will remain the same c. total fixed costs and total variable costs will change d. total fixed costs and total variable costs will remain the same
Answers: 3
You know the right answer?
Annual demand for an item is 35,000 units. The holding cost rate is 15% of the item cost. Ordering c...
Questions
