A company has estimated its economic order quantity for Part A at 3,000 units for the coming year. If ordering costs are P200 and carrying costs are PO.50 per unit per year, what is the estimated total annual usage? * Format: 11,111

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 19E: A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per...
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A company has estimated its economic order quantity for Part A at 3,000 units for the coming
year. If ordering costs are P200 and carrying costs are PO.50 per unit per year, what is the
estimated total annual usage? *
Format: 11,111
Transcribed Image Text:A company has estimated its economic order quantity for Part A at 3,000 units for the coming year. If ordering costs are P200 and carrying costs are PO.50 per unit per year, what is the estimated total annual usage? * Format: 11,111
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