ZuoTi.Pro
Question

A company sells 150,966 units per year. Fixed costs per order are $134 and carrying cost...

A company sells 150,966 units per year. Fixed costs per order are $134 and carrying cost is $26 per unit per year. What is the Economic Order Quantity?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Economic Order Quantity=[(2*Annual sales*Fixed cost per order)/Carrying cost]^(1/2)

=[(2*150966*134)/26]^(1/2)

which is equal to

=1247.44 units(Approx).

0 0
Add a comment
Know the answer?
Add Answer to:
A company sells 150,966 units per year. Fixed costs per order are $134 and carrying cost...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A firm sells 16,000 units of an item each year. The carrying cost per unit is...

    A firm sells 16,000 units of an item each year. The carrying cost per unit is $.65 and the fixed costs per order are $55. What is the economic order quantity? 1,498 units 1,531 units 1,646 units 1,465 units 1,613 units

  • ABC Company sells 37,029 chairs a year. The carrying cost per unit is $5.22 and the...

    ABC Company sells 37,029 chairs a year. The carrying cost per unit is $5.22 and the fixed costs per order are 35.25 per order. The company orders 397 units each time. The chairs are sold out before they are restocked. What is the economic order quantity? Enter your answer rounded off to two decimal points. Do not enter comma in the answer box.

  • 1 - XYZ is a retailer and sells 144,000 units per year. It purchases from a...

    1 - XYZ is a retailer and sells 144,000 units per year. It purchases from a single supplier. Fixed costs per order are $846 and carrying cost is $8 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1 2 - XYZ is a retailer and sells 183,000 units per year. It purchases from a single supplier. Fixed...

  • XYZ is a retailer and sells 149,000 units per year. It purchases from a single supplier....

    XYZ is a retailer and sells 149,000 units per year. It purchases from a single supplier. Fixed costs per order are $930 and carrying cost is $7 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity?

  • HELP!! Comfy Furniture sells 3,800 couches per year at an average price of $1,180. The carrying...

    HELP!! Comfy Furniture sells 3,800 couches per year at an average price of $1,180. The carrying cost per couch is $10.50 and the fixed order cost is $190. What is the economic order quantity for the couches? Comfy Furniture sells 3,800 couches per year at an average price of $1,180. The carrying cost per couch is $10.50 and the fixed order cost is $190. What is the economic order quantity for the couches? Multiple Choice 412.05 units O 370.84 units...

  • Diagnostic Supplies has expected sales of 72,900 units per year, carrying costs of $4 per unit,...

    Diagnostic Supplies has expected sales of 72,900 units per year, carrying costs of $4 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity units b-1. What is the average inventory? Average inventory units b-2. What is the total carrying cost? Total carrying cost Assume an additional 60 units of inventory will be required as safety stock. c-1. What will the new average inventory be? Average inventory units c-2. What...

  • XYZ is a retailer and sells 108,000 units per year. It purchases from a single supplier....

    XYZ is a retailer and sells 108,000 units per year. It purchases from a single supplier. Fixed costs per order are $912 and carrying cost is $7 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1

  • ABC Company sells 46,053 chairs a year at an average price per chair of $17.28. The...

    ABC Company sells 46,053 chairs a year at an average price per chair of $17.28. The carrying cost per unit is $23.71. The company orders 147 chairs at a time and has a fixed order cost of $89.83 per order. The chairs are sold out before they are restocked. What are the total costs if the company orders the optimal quantity (Economic Order Quantity)?

  • Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit,...

    Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.    a. What is the economic ordering quantity?      Economic ordering quantity units    b-1. What is the average inventory?      Average inventory units    b-2. What is the total carrying cost?      Total carrying cost $       Assume an additional 80 units of inventory will be required as safety stock.    c-1. What will the...

  • Question 16 ABC Company sells 38,436 chairs a year at an average price per chair of...

    Question 16 ABC Company sells 38,436 chairs a year at an average price per chair of $23.28. The carrying cost per unit is $20.64. The company orders 133 chairs at a time and has a fixed order cost of $160.16 per order. The chairs are sold out before they are restocked. What are the total costs if the company orders the optimal quantity (Economic Order Quantity)?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT