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Home Q & A Board Other Fields Homework Help Business Economics
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ashly138 ashly138
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Posts: 686
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6 years ago
Purchasing at the EOQ recommended level, how many deliveries will be made to Garry's Golf Supplies during each time period?
A) 2 deliveries
B) 6 deliveries
C) 9 deliveries
D) 12 deliveries
E) 3 deliveries
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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#1
6 years ago
C
Explanation:  C) Annual Demand/172,800/72 = 2,400 cartons
Carrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25
EOQ = The square root of [(2 × (172,800/72) × $125.00)/($7.25)]
EOQ = 287.7 cartons

Deliveries = Annual Demand/EOQ = 8.3 rounded up to 9
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