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Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 15 workdays to receive it. The annual holding cost is 15% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-weel year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer a. 188 O b. 277 O c. 247 O d. 231 e. None is correct

Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 15 workdays to receive it. The annual holding cost is 15% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-weel year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer a. 188 O b. 277 O c. 247 O d. 231 e. None is correct

FINANCIAL ACCOUNTING
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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Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 15 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer О а. 188 O b. 277 О с. 247 O d. 231 e. None is correct
Transcribed Image Text:Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 15 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer О а. 188 O b. 277 О с. 247 O d. 231 e. None is correct
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