requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, determine the following:
requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, determine the following:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, determine the following:
To determine the number of orders to be place in a year?
A. Total demand per year must be multiplied by the economic order quantity
B. Economic order quantity must be divided by the Total demand per year
C. Economic order quantity must added to the Total demand per year
D. Total demand per year must be divided by the economic order quantity
E. Economic order quantity must be subtracted from the Total demand per year
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