EBK SOUTH-WESTERN FEDERAL TAXATION 2019
42nd Edition
ISBN: 9781337671927
Author: Raabe
Publisher: Cengage Learning
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General accounting
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A company manufactures a product with the following specifications:
Units required annually = 1,200
.
Holding cost per unit per year = $0.75
•
Order preparation cost = $12
a) Compute the optimum lot size (EOQ).
b) Compute the annual inventory cost (holding cost).
c) Compute the annual order cost.
d) Compute the total cost.
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