Each year you sell 950 units of a product at a price of P899 each. The variable cost per unit is P575 and the carrying cost per unit is P16.90. Your fixed cost of ordering is P60. 4. What is the economic order quantity?
Each year you sell 950 units of a product at a price of P899 each. The variable cost per unit is P575 and the carrying cost per unit is P16.90. Your fixed cost of ordering is P60. 4. What is the economic order quantity?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![For numbers 4 & 5:
Each year you sell 950 units of a product at a price of P899 each. The variable cost per
unit is P575 and the carrying cost per unit is P16.90. Your fixed cost of ordering is P60.
4. What is the economic order quantity?
5. How much is the total ordering costs?
For numbers 6 & 7:
It's Complicated Inc. is concerned about managing cash efficiently. On the average,
inventories have an age of 90 days and accounts receivable are collected in 60 days.
Accounts payable are paid approximately 30 days after they arise.
6. What is the firm's operating cycle?
7. What is the firm's cash cycle?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb55649f-eddb-4007-8e1b-e008f473b8be%2F133a71ed-fa0b-4bc6-9874-fdfd0140574d%2Fbf94qtp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For numbers 4 & 5:
Each year you sell 950 units of a product at a price of P899 each. The variable cost per
unit is P575 and the carrying cost per unit is P16.90. Your fixed cost of ordering is P60.
4. What is the economic order quantity?
5. How much is the total ordering costs?
For numbers 6 & 7:
It's Complicated Inc. is concerned about managing cash efficiently. On the average,
inventories have an age of 90 days and accounts receivable are collected in 60 days.
Accounts payable are paid approximately 30 days after they arise.
6. What is the firm's operating cycle?
7. What is the firm's cash cycle?
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