ABC Co. is planning to stock a new product. The Co. Has developed the following information: Annual usage = 5400 units Cost of the product = 365 MU/unit Ordering cost = 55 MU/order Carrying cost = 28% /year of inventory value held. a Determine the optimal number of units per order b. Find the optimal number of orders/year c. Find the annual total inventory cost

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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ABC Co. is planning to stock a new product. The Co. Has developed the
following information:
Annual usage = 5400 units
Cost of the product = 365 MU/unit
Ordering cost = 55 MU/order
Carrying cost = 28% /year of inventory value held.
a Determine the optimal number of units per order
b. Find the optimal number of orders/year
c. Find the annual total inventory cost

Please mention formulas and do it in detail so I can understand.

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