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7nadin3 [17]
3 years ago
13

Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $900. Suppose also

that it costs $29 to produce each item and $3 per year to store an item. Use the inventory cost model to find the number of items in each production run so that the total costs of production and storage are minimized.
Business
1 answer:
bulgar [2K]3 years ago
5 0

Answer:

30,000 units

Explanation:

we can use the economic order quantity formula:

EOQ = √(2SD/H)

where:

  • S = order cost (per purchase order) ≈ production run cost = $900
  • D = demand in units (annual basis) ≈ production requirement = 1,500,000 units
  • H = holding costs (per unit, per year) = $3 per item, per year

EOQ = √[(2 x $900 x 1,500,000) / $3] = 30,000 units

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Suppose you had a large unpaid balance on your credit card and were paying a high rate of interest. You then received a​ one-tim
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The answer is NO.

Explanation:

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3 years ago
Selected data from the Florida Fruit Company are presented below: Total assets $1,500,000 Average total assets 1,850,000 Net inc
Mkey [24]

Answer:

13.5%

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5 0
3 years ago
Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho
Fofino [41]

Answer:

$6,765

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Since the company uses a predetermined overhead rate based on direct labor-hours, the overhead cost for job K913 is:

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8 0
3 years ago
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horsena [70]

Answer:

Explanation:

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going by the question Upon issuance, Ozark should

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5 0
3 years ago
Read 2 more answers
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