Show how increasing sales for an item will lower the COGS on a PER UNIT basi

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Joiner & Sons Hardware: Case Study 
Exploring Multichannel Opportunities

: Stephanie claims increasing sales will reduce the COGS on a PER UNIT basis. Wilson’s
EOQ includes some of the logistics costs in COGS [assume annual demand is 1,000
units per year, ordering cost is $55 per order, annual inventory carrying cost is 34.8%,
unit purchase price is $48, and sales increases by 24% annually]. Show how increasing
sales for an item will lower the COGS on a PER UNIT basi

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