A company makes and sells keyboarc

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 17PROB
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* Vol) 4G
· LTE1
ll 84% 1 4:44 PM
You
Just now
A company makes and sells keyboards
for $1000 each. The annual
holding cost is 10%. of the sale price.
Annual demand is 10,000 units.
The company is open 300 days of the
year and can make 60 keyboards
per day. The order setup cost is $150 per
order. Determine the
following:
1. The economic order quantity.
2. The production downtime.
3. The number of orders/year.
4. The order cycle
5. The annual ordering cost.
Transcribed Image Text:* Vol) 4G · LTE1 ll 84% 1 4:44 PM You Just now A company makes and sells keyboards for $1000 each. The annual holding cost is 10%. of the sale price. Annual demand is 10,000 units. The company is open 300 days of the year and can make 60 keyboards per day. The order setup cost is $150 per order. Determine the following: 1. The economic order quantity. 2. The production downtime. 3. The number of orders/year. 4. The order cycle 5. The annual ordering cost.
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