Sandhill Traders is one of the largest RV dealers in Austin, Texas, and sells about 2,800 recreational vehicles a year. The cost of placing an order with Sandhill's supplier is $500, and the inventory carrying costs are $260 for each RV. Management likes to maintain safety stock of 12 RVs. Most of its sales are made in either the spring or the fall. How many orders should the firm place this year? (Round intermediate calculations to 1 decimal place, e.g. 15.5 and final answer to 0 decimal places, e.g. 15.)
Sandhill Traders is one of the largest RV dealers in Austin, Texas, and sells about 2,800 recreational vehicles a year. The cost of placing an order with Sandhill's supplier is $500, and the inventory carrying costs are $260 for each RV. Management likes to maintain safety stock of 12 RVs. Most of its sales are made in either the spring or the fall. How many orders should the firm place this year? (Round intermediate calculations to 1 decimal place, e.g. 15.5 and final answer to 0 decimal places, e.g. 15.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sandhill Traders is one of the largest RV dealers in Austin, Texas, and sells about 2,800 recreational vehicles a year. The cost of placing an order with Sandhill's supplier is $500, and the inventory carrying costs are $260 for each RV. Management likes to maintain safety stock of 12 RVs. Most of its sales are made in either the spring or the fall. How many orders should the firm place this year? (Round intermediate calculations to 1 decimal place, e.g. 15.5 and final answer to 0 decimal places, e.g. 15.)
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