The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The cost per unit is $ 15, order cost is $ 15 per order and carrying cost is 20%. Required: If the company uses the following lots, how much the company will save with compare to existing? Semi Annually • Monthly • Bi-Monthly What is the most economic among the above mentioned scenarios
The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The cost per unit is $ 15, order cost is $ 15 per order and carrying cost is 20%. Required: If the company uses the following lots, how much the company will save with compare to existing? Semi Annually • Monthly • Bi-Monthly What is the most economic among the above mentioned scenarios
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The
cost per unit is $ 15, order cost is $ 15 per order and carrying cost is 20%.
Required:
If the company uses the following lots, how much the company will save with compare to existing?
Semi Annually
Monthly
Bi-Monthly
What is the most economic among the above mentioned scenarios
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