Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
Related questions
Question
![The Talbot Company uses electrical assemblies to produce an array of small appliances. One of
its high cost / high volume assemblies, the XO-01, has an estimated annual demand of 8,000
units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is
$20 per year. The company operates 250 days per year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff76de5af-bffa-4820-98e9-f0f0f917ba61%2Fbec7b5fa-6c1d-4dc9-8ebc-5890821bd9a6%2Fjz64qg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Talbot Company uses electrical assemblies to produce an array of small appliances. One of
its high cost / high volume assemblies, the XO-01, has an estimated annual demand of 8,000
units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is
$20 per year. The company operates 250 days per year.
![2. How many times per year must Talbot order the XO-01 when orders are placed using
the EOQ quantity?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff76de5af-bffa-4820-98e9-f0f0f917ba61%2Fbec7b5fa-6c1d-4dc9-8ebc-5890821bd9a6%2Fh6t1aos_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. How many times per year must Talbot order the XO-01 when orders are placed using
the EOQ quantity?
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