Answer:
11547 lb
Explanation:
Economic Order Quantity is the ordering quantity where the cost of ordering and holding inventory is the minimum. It is the point where the cost of ordering and holding inventory intersects.
To calculate the Economic Order Quantity we use the following formula,
- EOQ =√(2 × Annual Demand × Ordering Cost/Order) / Holding Cost per unit per annum
Plugging in the values in the formula,
- EOQ = √(2 × 100000 × 100) / 0.15 ⇒ 11547.00538 rounded off to 11547 lbs
Answer:
management believes the future earnings of the firm will be strong
Explanation:
The information content with respect to the regular dividend would be increase when the company would have a greater amount of earnings in near future and they try to give the greater amount of dividend to the shareholders. This represent the management would trust that the earnings of the future of the firm would be strong
Hence, the last option is correct
