The XYZ company has traditionally ordered ink refills 80 units at a time. This company estimates that carrying cost is $ 5 /unit/year; and that annual demand is about 400 units per year. Question: for what valuo of the ordering cost (i,o., cost/order) would the curront order quantity be optimal? Show all the details of your calculations to get full marks.

The XYZ company has traditionally ordered ink refills 80 units at a time. This company estimates that carrying cost is $ 5 /unit/year; and that annual demand is about 400 units per year. Question: for what valuo of the ordering cost (i,o., cost/order) would the curront order quantity be optimal? Show all the details of your calculations to get full marks.

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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