Triple T Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag P2.50 Carrying cost 20% of unit cost Purchase cost/bag P1.50 Operating days per year 250 Ordering cost P5.40/order Ave. lead time on purchases 6 days Maximum lead time 13.5 days Compute the reorder point for Triple T Inc.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Triple T Inc. sells 100,000 tea bags a year. Other data are as follows:
Selling price/bag P2.50 Carrying cost 20% of unit cost
Purchase cost/bag P1.50 Operating days per year 250
Ordering cost P5.40/order Ave. lead time on purchases 6 days
Maximum lead time 13.5 days

Compute the reorder point for Triple T Inc.

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