A sport store carries a shoe for men that sells an approximately 3,049 pairs per year. store purchases the shoes from the manufacturer for $30.2 per pair. The order lead t 12 days. It costs the store $58 to place and process an order. The annual carrying cha 24 percent. Assume EOQ model is appropriate and 360 days a year. If the store uses quantity of 276 units per order, what is the annual ordering cost?

A sport store carries a shoe for men that sells an approximately 3,049 pairs per year. store purchases the shoes from the manufacturer for $30.2 per pair. The order lead t 12 days. It costs the store $58 to place and process an order. The annual carrying cha 24 percent. Assume EOQ model is appropriate and 360 days a year. If the store uses quantity of 276 units per order, what is the annual ordering cost?

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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Question

A sport store carries a shoe for men that sells an approximately 3,049 pairs per year. The
store purchases the shoes from the manufacturer for $30.2 per pair. The order lead time is
12 days. It costs the store $58 to place and process an order. The annual carrying charge is
24 percent. Assume EOQ model is appropriate and 360 days a year. If the store uses an order
quantity of 276 units per order, what is the annual ordering cost?
Use at least 4 decimal places.

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