Norman buys baseball bats from a manufacturer at P10 each. Norman expects to sell 90,000 bats evenly over the next year. Norman's cost of capital is 10 percent. The total out-of-pocket cost to carry one bat in inventory is P0.50 and the cost of ordering bats is P15per order. 22. Suppose that Norman orders 3,000 bats at a time. What is the total annual inventory cost? Р 750 b. Р1,200 P 2,250 d. P 2,700 (10% X PIS) = 1.'5 0.5 а. с. 23. What is thẹ economic order quantity? 1,342 units b. 1,643 units c. 2,324 units d. 3,000 units "a. 24. How many times would Norman have to place an order in one year? a. 67 times b. 55 times c. 39 times d. 30 times
Norman buys baseball bats from a manufacturer at P10 each. Norman expects to sell 90,000 bats evenly over the next year. Norman's cost of capital is 10 percent. The total out-of-pocket cost to carry one bat in inventory is P0.50 and the cost of ordering bats is P15per order. 22. Suppose that Norman orders 3,000 bats at a time. What is the total annual inventory cost? Р 750 b. Р1,200 P 2,250 d. P 2,700 (10% X PIS) = 1.'5 0.5 а. с. 23. What is thẹ economic order quantity? 1,342 units b. 1,643 units c. 2,324 units d. 3,000 units "a. 24. How many times would Norman have to place an order in one year? a. 67 times b. 55 times c. 39 times d. 30 times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer questions 22 , 23 and 24. Shows solutions po
Transcribed Image Text:Norman buys baseball bats from a manufacturer at P10 each. Norman expects to sell
90,000 bats evenly over the next year. Norman's cost of capital is 10 percent, The
total out-of-pocket cost to carry one bat in inventory is P0.50 and the cost of ordering
bats is P15per order.
22. Suppose that Norman orders 3,000 bats at a time. What is the total annual
inventory cost?
P 750
b. Р 1,200
(10% X PI5) = 1.'5
0.5
а.
с.
P 2,250
d. P 2,700
23. What is thẹ economic order quantity?
´a. 1,342 units
b. 1,643 units
с. 2,324 units
d. 3,000 units
24. How many times would Norman have to place an order in one year?
a. 67 times
b. 55 times
c. 39 times
d. 30 times
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