1. The ACE company estimates its annual requirement requirement is 78,000 units at a price of 4 per unit. The carrying cost at 15% and its ordering cost at 90 per order. Compute the following: a) What is the most economical no. of units to order? b) No. of orders to be placed in a year. c) About how often will an order need to be placed?
1. The ACE company estimates its annual requirement requirement is 78,000 units at a price of 4 per unit. The carrying cost at 15% and its ordering cost at 90 per order. Compute the following: a) What is the most economical no. of units to order? b) No. of orders to be placed in a year. c) About how often will an order need to be placed?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. The ACE company estimates its annual requirement requirement is 78,000 units at a price of 4 per unit. The carrying cost at 15% and its ordering cost at 90 per order.
Compute the following:
a) What is the most economical no. of units to order?
b) No. of orders to be placed in a year.
c) About how often will an order need to be placed?
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