If demand for one year is 25,000 units, relevant ordering cost for each purchase order is $210 and carrying cost of one unit of stock i $25, then the Economic Order Quantity (EOQ) is: O a. 648 packages O b. 678 packages O c. 668 packages O d. 658 packages

If demand for one year is 25,000 units, relevant ordering cost for each purchase order is $210 and carrying cost of one unit of stock i $25, then the Economic Order Quantity (EOQ) is: O a. 648 packages O b. 678 packages O c. 668 packages O d. 658 packages

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter7: Inventory Cost Flow Assumptions (fifolifo)

Section: Chapter Questions

Problem 8R: Reset the November 20 purchase to 150 units, including column G. To test your formulas, suppose that...

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If demand for one year is 25,000 units, relevant ordering cost for each purchase order is $210 and carrying cost of one unit of stock is
$ 25, then the Economic Order Quantity (EOQ) is:
O a. 648 packages
O b. 678 packages
O c. 668 packages
O d.
658 packages
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Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D=Demand in units for one year, P=Ordering cost per purchase order, C=Carrying cost of one unit in stock, Q=Any order quantity.) ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC Part 2 (Round your answer to the nearest whole number.) The EOQ is 560 jerseys. Part 3 Requirement 2. Calculate the number of orders that will be placed each year. Determine the formula used to calculate the number of orders that will be placed each year, then calculate the orders per year. (Round your answer up to the nearest whole number.) ÷ = Number of orders
A) Calculate Economic Ordering Quantity ( EOQ ) if cost of carrying 1 unit in inventory = $24 total demand in units over planning period = 60,000 units ordering cost per order = $800 Common Stock A Common Stock B Probability Return Probability Return .30 11% .20 25% .40 15% .30 6% .30 19% .30 14% .20 22%
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