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Onxy Onxy
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7 years ago
Winter Resort Solutions sells ski and snowboard equipment. The company also manufactures snowboards. Winter Resort Solutions orders 6,000 snowboards a year, 115 per week, at $24.50 per board and it covers all shipping costs. The company earns 30% on its cash investments. The purchase-order lead time is 2.5 weeks. It sells 125 snowboards per week. The following data are available:

Relevant ordering costs per purchase order   $21.25
Relevant insurance, materials handling, breakage,
and so on, per year   $2.50

Compute the economic order quantity for Platinum Snow Company and the reorder point.
A) 22,615 snowboards; 502 snowboards
B) 161 snowboards; 313 snowboards
C) 205 snowboards; 112.5 snowboards
D) 42,000 snowboards; 450 snowboards
E) 520 snowboards; 112.5 snowboards
Textbook 
Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
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lordingtonlordington
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thank you
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