Answer: The mean income of the three people surveyed is $33,000.
The mean or average of a data set is nothing but the sum total of all the observations in a given set of data divided by the number of observations.
The formula for calculating the mean is:
where
is the mean or average
X₁ , X₂, X₃ .......Xn refers to the observations
N is the total number of observations
Substituting the values in the formula for mean we get,
Answer:
Annual demand (U) = 90.000 bags
Cost of each bag = $1.50
Inventory carrying cost per unit(C) = $1.50 × 20% = 0 30
Ordering cost per unit (O) = $15
Part A)
EOQ = 3,000
Part B)
Maximum inventory = EOQ + Safety inventory on hand
Maximum inventory = 3000 + 1000
Maximum inventory = 4.000
Part C)
Average inventory = Maximum inventory + Minimum or Safety /2
Average inventory = 4,000 + 1,000 / 2
Average inventory =2,500
Part D)
How often company order = Annual demand / EOQ
How often company order = 90,000 / 3.000
How often company order = 30