A bookstore chain, Bright Reads, Inc., sells about 9,000 copies of "The Secrets of Success" annually. The cost of ordering a batch of books from the publisher is $25, and the annual holding cost per book is $1.50. What is the Economic Order Quantity (EOQ)? A. 100 B. 367 C. 50 D. 548

A bookstore chain, Bright Reads, Inc., sells about 9,000 copies of "The Secrets of Success" annually. The cost of ordering a batch of books from the publisher is $25, and the annual holding cost per book is $1.50. What is the Economic Order Quantity (EOQ)? A. 100 B. 367 C. 50 D. 548

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Please give me true answer this financial accounting question

A bookstore chain, Bright Reads, Inc., sells about 9,000 copies of "The
Secrets of Success" annually. The cost of ordering a batch of books from
the publisher is $25, and the annual holding cost per book is $1.50.
What is the Economic Order Quantity (EOQ)?
A. 100
B. 367
C. 50
D. 548

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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?