What is considered a license, but is not necessarily a degree?
1 answer:
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Answer: $44,000
Explanation:
Equivalent units for materials in this scenario would be:
= Units completed and transferred out + Normal spoilage + Ending work in process
= 33,000 + 3,000 + 8,000
= $44,000
<u>Given:</u>
Annual demand = 410 units
Ordering cost = $41
Holding cost = $5 unit per year
<u>To find:</u>
Number of units to be ordered each time an order is placed
<u>Solution:</u>
On calculating the number of units,
Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.