Clap Off Manufacturing uses 2,800 switch assemblies per week and then reorders another 2,800. Assume the relevant carrying cost per switch assembly is $6.50 and the fixed order cost is $545. a. Calculate the carrying costs. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Calculate the restocking costs. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Calculate the economic order quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Calculate the EOQ number of orders per year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Clap Off Manufacturing uses 2,800 switch assemblies per week and then reorders another 2,800. Assume the relevant carrying cost per switch assembly is $6.50 and the fixed order cost is $545. a. Calculate the carrying costs. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Calculate the restocking costs. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Calculate the economic order quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Calculate the EOQ number of orders per year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Clap Off Manufacturing uses 2,800 switch assemblies per week and then reorders
another 2,800. Assume the relevant carrying cost per switch assembly is $6.50 and the
fixed order cost is $545.
a. Calculate the carrying costs. (Do not round intermediate calculations and round your
answer to the nearest whole number, e.g., 32.)
b. Calculate the restocking costs. (Do not round intermediate calculations and round
your answer to the nearest whole number, e.g.., 32.)
c. Calculate the economic order quantity. (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g.., 32.16.)
d. Calculate the EOQ number of orders per year. (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. Carrying costs
b. Restocking costs
Economic order quantity
C.
d. Number of orders
aw
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