23. The following information is available for the Trench Company's material B: Annual usage in units Working days per year Safety stock in units Normal lead time in working days Assuming that the units of material B will be required throughout the year, the order point would be 10,000 250 400 30

23. The following information is available for the Trench Company's material B: Annual usage in units Working days per year Safety stock in units Normal lead time in working days Assuming that the units of material B will be required throughout the year, the order point would be 10,000 250 400 30

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

23. The following information is available for the Trench Company's material B:
Annual usage in units
Working days per year
Safety stock in units
Normal lead time in working days
Assuming that the units of material B will be required throughout the year, the order point would be
a 400
10,000
250
400
30
d. 1.600

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