3. PHL assembles security monitors. It purchases 900 black-and-white cathode ray tubes per month at $80 each. Ordering costs are $120, and annual carrying costs are $20 per unit. - a) Determine the economic order quantity (2 points) - b) Find number of orders per year (1 point) - c) If the supplier offer a price of $79.5 per tube for ordering 1200 tubes in a lot, would you evaluate and advise PHL to take advantage of the offer? (2 points)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...
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3. PHL assembles security monitors. It
purchases 900 black-and-white cathode
ray tubes per month at $80 each. Ordering
costs are $120, and annual carrying costs
are $20 per unit. - a) Determine the
economic order quantity (2 points) - b)
Find number of orders per year (1 point) -
c) If the supplier offer a price of $79.5 per
tube for ordering 1200 tubes in a lot,
would you evaluate and advise PHL to
take advantage of the offer? (2 points)
Transcribed Image Text:3. PHL assembles security monitors. It purchases 900 black-and-white cathode ray tubes per month at $80 each. Ordering costs are $120, and annual carrying costs are $20 per unit. - a) Determine the economic order quantity (2 points) - b) Find number of orders per year (1 point) - c) If the supplier offer a price of $79.5 per tube for ordering 1200 tubes in a lot, would you evaluate and advise PHL to take advantage of the offer? (2 points)
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