Economic Order Quantity Melchar Company uses 117,600.00 pounds of oats each year. The cost of placing an order is $15, and the carrying cost for one pound of oats is $0.45. Required: 1. Compute the economic order quantity for oats. If required, round your answer to the nearest whole number pounds 2. Compute the carrying and ordering costs for the EOQ. If required, round your answers to the nearest cent. Carrying cost Ordering cost

Economic Order Quantity Melchar Company uses 117,600.00 pounds of oats each year. The cost of placing an order is $15, and the carrying cost for one pound of oats is $0.45. Required: 1. Compute the economic order quantity for oats. If required, round your answer to the nearest whole number pounds 2. Compute the carrying and ordering costs for the EOQ. If required, round your answers to the nearest cent. Carrying cost Ordering cost

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Economic Order Quantity
Melchar Company uses 117,600.00 pounds of oats each year. The cost of placing an order is $15, and the
carrying cost for one pound of oats is $0.45.
Required:
1. Compute the economic order quantity for oats. If required, round your answer to the nearest whole number.
pounds
2. Compute the carrying and ordering costs for the EOQ. If required, round your answers to the nearest cent.
Carrying cost
Ordering cost
24

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