A speaker manufacturer, Golding Audio, uses approximately 36,000 tweeter units annually. These components are consumed at a steady rate during the 240 workdays per year that the facility operates. The annual holding cost per unit is $0.60, and the ordering cost is $45 per order. What is the number of workdays in an order cycle?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
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Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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What is the number of workdays in an order cycle ?

A speaker manufacturer, Golding Audio, uses
approximately 36,000 tweeter units
annually. These components are consumed at
a steady rate during the 240 workdays per
year that the facility operates. The annual
holding cost per unit is $0.60, and the
ordering cost is $45 per order.
What is the number of workdays in an order
cycle?
Transcribed Image Text:A speaker manufacturer, Golding Audio, uses approximately 36,000 tweeter units annually. These components are consumed at a steady rate during the 240 workdays per year that the facility operates. The annual holding cost per unit is $0.60, and the ordering cost is $45 per order. What is the number of workdays in an order cycle?
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