1. If the economic order quantity model is used, the economic lot size is a. 1,500 unitsb. 2,250 unitsc. 2,750 unitsd. None of these 2. At present, the companies total annual inventory cost is a. 7,500b. 16,875c. 22,500d. 24,375 Problem 10. At the present, Roman Company produces 2,250 units of Product X per productionrun, for a total of 15 production runs per year. The company is considering to use the economicorder quantity model to determine the economic lot size and the number of production runs thatwill minimise the total inventory carrying cost and set up cost for Product X. The followinginformation pertains to Roman's flagship Product X:Annual demand33,750 unitsP15Annual cost to hold one unit of Product XP500Costs to initiate a product runBeginning inventoryZero

Economic order quantity model shows the number of units to be order in one order so as to ensure…

em 10. At the present, Roman Company produces 2,250 units of Product X per production r a total of 15 production runs per year. The company is considering to use the economic quantity model to determine the economic lot size and the number of production runs that inimise the total inventory carrying cost and set up cost for Product X. The following ation pertains to Roman's flagship Product X: Annual demand 33,750 units P15 Annual cost to hold one unit of Product X Costs to initiate a product run Beginning inventory P500 Zero

em 10. At the present, Roman Company produces 2,250 units of Product X per production r a total of 15 production runs per year. The company is considering to use the economic quantity model to determine the economic lot size and the number of production runs that inimise the total inventory carrying cost and set up cost for Product X. The following ation pertains to Roman's flagship Product X: Annual demand 33,750 units P15 Annual cost to hold one unit of Product X Costs to initiate a product run Beginning inventory P500 Zero

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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