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Problem 3: Economic Order Quantity GHI Company has an annual demand of 100,000.00 units of Material Y. The ordering cost is 125.00 per order, cost per unit 5.00, and the annual carrying cost per unit is 1.00. Assume that the units will be required evenly throughout the year. Compute for the following: 9. Economic order quantity 10. Number of orders made on first quarter 11. Total carrying cost 12. Total ordering cost

Problem 3: Economic Order Quantity GHI Company has an annual demand of 100,000.00 units of Material Y. The ordering cost is 125.00 per order, cost per unit 5.00, and the annual carrying cost per unit is 1.00. Assume that the units will be required evenly throughout the year. Compute for the following: 9. Economic order quantity 10. Number of orders made on first quarter 11. Total carrying cost 12. Total ordering cost

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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Answer Problem #3 : items 9 & 10

Problem 3: Economic Order Quantity GHI Company has an annual demand of 100,000.00 units of Material Y. The ordering cost is 125.00 per order, cost per unit 5.00, and the annual carrying cost per unit is 1.00. Assume that the units will be required evenly throughout the year. Compute for the following: 9. Economic order quantity 10. Number of orders made on first quarter 11. Total carrying cost 12. Total ordering cost
Transcribed Image Text:Problem 3: Economic Order Quantity GHI Company has an annual demand of 100,000.00 units of Material Y. The ordering cost is 125.00 per order, cost per unit 5.00, and the annual carrying cost per unit is 1.00. Assume that the units will be required evenly throughout the year. Compute for the following: 9. Economic order quantity 10. Number of orders made on first quarter 11. Total carrying cost 12. Total ordering cost
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