Calculate ordering, holding, and total Inventory.costs for the EOQ and also determineHow many orders will.be placed per year using.the EOQ?.C.d.the change in total inventory cost.CS Scanned with CamScanner .P3-5.Asupplier'seļls MF Tireş.to dealers. he annual.demandis.approximătely 1.000 tires. Thesupplier pays P50 for each tire and estimates that the annual: holding cost is 20 percent of::the total value of tires, It.costs appröximately,P25 to place an prder. The supplier currently.orders 80 tifes per month.:Requited:Calculate ordering, holding; and-tótalilinventory.costs for the current ordered quảntity:a.b.. Determine the EOQCS Scanned with CamScanner

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

P3-5.Asupplier'selis MF Tiresto dealers. The annual.demandis approximately 1.000 tires The supplier pays P50 før each tire and estimates that the anrüalk holding costis 20 percentof: the total value of tíres, It.costs approximately,P26, toọ place an order. The supplier currently: orders 80 tifes per month. Required: a Calculațe ordering, holding, and totaliInventory.Çosts for the current ordered quantity: * b.. Determine the EOQ:

P3-5.Asupplier'selis MF Tiresto dealers. The annual.demandis approximately 1.000 tires The supplier pays P50 før each tire and estimates that the anrüalk holding costis 20 percentof: the total value of tíres, It.costs approximately,P26, toọ place an order. The supplier currently: orders 80 tifes per month. Required: a Calculațe ordering, holding, and totaliInventory.Çosts for the current ordered quantity: * b.. Determine the EOQ:

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 19PROB

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