Can someone please help me ASAP!
1 answer:
You might be interested in
Answer:
$364.29
Explanation:
given,
Packing of crates per month (u)= 800
annual carrying cost of 35 percent of the purchase price per crate.
Ordering cost(S) = $ 28
D = 800 x 12 = 9600 crates/year
H = 0.35 P
H = 0.35 x $10
H = $3.50/crate per yr.
Present Total cost
=
= 1400 + 336
= $ 1,736
Total cost at EOQ
=
= 685.86 + 685.85
= $ 1,371.71
the firm save annually in ordering and carrying costs by using the EOQ
= $ 1,736 - $ 1,371.71
= $364.29