Dream Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of P4 per order, and carrying costs of P1.008 per unit. The following year, the company. learns it can reduce ordering costs to P1 per order but that carrying costs will stay the same at P1.008 per unit. What is the total cost of inventory to be expected?

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A:

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A: EOQ=2×Annual demand×Ordering costCarrying cost=2×660×$2,52535%×$15,000=25 units

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A: Annual Carrying Cost=Carrying cost×Annual SaleOrder Times/2=$0.04×4,000,00046/2=$1739.13 Annual…

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A: working note: 224.328*3,500 =78,51,48 249.458*2,600= 6,48,590 68.593*2,300=1,57,763 56.58*500…