Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 20, Problem 20.17E

1.

To determine

To compute: The EOQ with revised ordering cost.

Given information:

Annual demand is 10,000 units per year

Ordering cost is $30 per order

Carrying cost is $7 per jersey

2.

To determine

To explain: The affect of this offer on inventory management of the company and also explain the factor that company consider to accept AT proposal.

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