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skully skully
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The Plastic Saver company produces a specialty plastic product, and has the following information available concerning its inventory items:

Relevant ordering costs per purchase order      $450
Relevant carrying costs per year:
Required annual return on investment      15%
Required other costs per year      $3.50

Annual demand is 30,000 packages per year. The purchase price per package is $45.

Required:
a.   Compute the economic order quantity and the relevant total costs.
b.   Compute the total relevant costs, assuming the quantity ordered equals 1,250 units. How many deliveries will be required at the economic order quantity?
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Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
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lordingtonlordington
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skully Author
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7 years ago
Thank you for answering correctly
Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
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