Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 40 times over the next year. The carrying cost is $0.03 per zen-zen per year. The order cost is $596 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost. What is the annual carrying cost for the zen-zens? (Round to the nearest dollar.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Chapter 13, Question 8. Attached is a similar question with answers. Please answer the same four parts for the new question

Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales.
The inventory manager plans to order zen-zens 43 times over the next year. The carrying cost is $0.04 per zen-zen per year. The order cost is $695 per order. What
are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost.
What is the annual carrying cost for the zen-zens?
$ 1,860 (Round to the nearest dollar.)
What is the annual ordering cost for the zen-zens?
$ 29,885 (Round to the nearest dollar.)
What is the optimal order quantity for the zen-zens?
372,827 zen-zens (Round to the nearest whole unit.)
At the EOQ, what is the new total inventory cost?
$ 14,914 (Round to the nearest dollar.)
Transcribed Image Text:Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 43 times over the next year. The carrying cost is $0.04 per zen-zen per year. The order cost is $695 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost. What is the annual carrying cost for the zen-zens? $ 1,860 (Round to the nearest dollar.) What is the annual ordering cost for the zen-zens? $ 29,885 (Round to the nearest dollar.) What is the optimal order quantity for the zen-zens? 372,827 zen-zens (Round to the nearest whole unit.) At the EOQ, what is the new total inventory cost? $ 14,914 (Round to the nearest dollar.)
Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales.
The inventory manager plans to order zen-zens 40 times over the next year. The carrying cost is $0.03 per zen-zen per year. The order cost is $596 per order. What
are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost.
What is the annual carrying cost for the zen-zens?
(Round to the nearest dollar.)
Transcribed Image Text:Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 40 times over the next year. The carrying cost is $0.03 per zen-zen per year. The order cost is $596 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost. What is the annual carrying cost for the zen-zens? (Round to the nearest dollar.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Annuity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education