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4. Hasya Enterprise sells notebooks and the annual demand for the notebooks is 1800. The cost of the notebook is RM 1200. It costs the company RM 44 to place an order and the carrying costs 6% of the unit cost. If the notebooks are ordered in quantity of 300 units or more, the company can obtain a discount of 8%. Determine whether the company should take advantage of the offer. Find the optimal order quantity for the company, the annual ordering cost, annual holding cost, annual unit costs and the total inventory cost.

4. Hasya Enterprise sells notebooks and the annual demand for the notebooks is 1800. The cost of the notebook is RM 1200. It costs the company RM 44 to place an order and the carrying costs 6% of the unit cost. If the notebooks are ordered in quantity of 300 units or more, the company can obtain a discount of 8%. Determine whether the company should take advantage of the offer. Find the optimal order quantity for the company, the annual ordering cost, annual holding cost, annual unit costs and the total inventory cost.

FINANCIAL ACCOUNTING
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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4. Hasya Enterprise sells notebooks and the annual demand for the notebooks is 1800. The cost of the notebook is RM 1200. It costs the company RM 44 to place an order and the carrying costs 6% of the unit cost. If the notebooks are ordered in quantity of 300 units or more, the company can obtain a discount of 8%, Determine whether the company should take advantage of the offer. Find the optimal order quantity for the company, the annual ordering cost, annual holding cost, annual unit costs and the total inventory cost.
Transcribed Image Text:4. Hasya Enterprise sells notebooks and the annual demand for the notebooks is 1800. The cost of the notebook is RM 1200. It costs the company RM 44 to place an order and the carrying costs 6% of the unit cost. If the notebooks are ordered in quantity of 300 units or more, the company can obtain a discount of 8%, Determine whether the company should take advantage of the offer. Find the optimal order quantity for the company, the annual ordering cost, annual holding cost, annual unit costs and the total inventory cost.
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