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1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nd; c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.

1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Nd; c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.

FINANCIAL ACCOUNTING
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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1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Na; c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.
Transcribed Image Text:1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a certain decorator table this year. Her accountants have determined that ordering costs amount to $50.00 per year and that carrying costs amount to 25% of average inventory while the price of each unit is $500.00. Find the following: a) Optimal number of Orders per year, No; b) Optimal number of Days' supply per order, Na; c) Optimal number of Dollars per order, Ns; d) Optimal number of Units per order, Nu.
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