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?
Chapter7: Budgeting
Section: Chapter Questions
Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F377ddc03-d759-4070-9c99-19590cebf476%2Fd57469b9-5baa-498d-9342-8431526fcc10%2F981qzf9_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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