Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory chargesAmazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is givenbyShipment cost = $50 + 2QAssume the annual inventory carrying cost is 20 percent.a-1. What is Amazon's total cost per shipment?Cost per shipment$Qa-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.)Annual holding cost$|per bookb. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.)Optimal shipment sizebooksc. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)Average throughput timemonths

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Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given by Shipment cost = $50 + 2Q Assume the annual inventory carrying cost is 20 percent. a-1. What is Amazon's total cost per shipment? Cost per shipment a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.) Annual holding cost$ | ]per book b. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.) Optimal shipment size[ books c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given by Shipment cost = $50 + 2Q Assume the annual inventory carrying cost is 20 percent. a-1. What is Amazon's total cost per shipment? Cost per shipment a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.) Annual holding cost$ | ]per book b. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.) Optimal shipment size[ books c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

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

Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory charges
Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given
by
Shipment cost = $50 + 2Q
Assume the annual inventory carrying cost is 20 percent.
a-1. What is Amazon's total cost per shipment?
Cost per shipment
$
Q
a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.)
Annual holding cost$|
per book
b. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.)
Optimal shipment size
books
c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Average throughput time
months

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