If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost? a) 50. b) 600. c) 1200. d) 2400. e) Can not be determined.
If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost? a) 50. b) 600. c) 1200. d) 2400. e) Can not be determined.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If annual demand is 24,000 units, orders are placed
every 0.5 months, and the cost to place an order is $50, what
is the annual ordering cost?
a) 50.
b) 600.
c) 1200.
d) 2400.
e) Can not be determined.
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