XYZ is a retailer and sells 171,000 units per year. It purchases from a single supplier. Fixed cost per order is $900 and carrying cost is $5 per unit. Suppose XYZ orders 9,000 units per order from the supplier. What are the total costs (sum of carrying costs and shortage costs)? Round off your answer to two decimal points. Do not enter $ in the answer box.
XYZ is a retailer and sells 171,000 units per year. It purchases from a single supplier. Fixed cost per order is $900 and carrying cost is $5 per unit. Suppose XYZ orders 9,000 units per order from the supplier. What are the total costs (sum of carrying costs and shortage costs)? Round off your answer to two decimal points. Do not enter $ in the answer box.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![XYZ is a retailer and sells 171,000 units per year. It purchases from a single
supplier. Fixed cost per order is $900 and carrying cost is $5 per unit.
Suppose XYZ orders 9,000 units per order from the supplier. What are the total
costs (sum of carrying costs and shortage costs)?
Round off your answer to two decimal points. Do not enter $ in the answer box.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F896331c7-77f6-4437-8c30-ba964fc374d3%2Fc0a5355f-45f1-43b9-ad01-612ddc549d4a%2Fjlwxkhh_processed.png&w=3840&q=75)
Transcribed Image Text:XYZ is a retailer and sells 171,000 units per year. It purchases from a single
supplier. Fixed cost per order is $900 and carrying cost is $5 per unit.
Suppose XYZ orders 9,000 units per order from the supplier. What are the total
costs (sum of carrying costs and shortage costs)?
Round off your answer to two decimal points. Do not enter $ in the answer box.
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