1. The best-sselling pair of shoes Footstep sells for P499.99 apair. The store consistently selis 7000 pairs of these shoesevery year. The fixed costs to order more shoes is P80 andthe carrying costs are P2.25 per pair.a) What is the economic order quantity? (whole number)b.) How much is the carrying cost? (2 decimal point)2. Each year you sell 950 units of earphones at a price of P399each. The variable cost per unit is P675 and the carryingcost per unit is P18.00. Your fixed cost of ordering is P60.a.) What is the economic order quantity? (whole number)b.) How much is the carrying cost? (2 decimal point)c.) How much is the ordering cost if ordering quantity is100? (2 decimal point)

The minimum number of orders required by a company so that its cost is minimum is known as the…

The best-selling pair of shces Footstep se!lls for P499.99 a pair. The store consistently selis 7000 pairs of these shoes every year. The fixed costs to order more shoes is P80 and the carrying costs are P2.25 per pair. a) What is the economic order quantity? (whole number)

The best-selling pair of shces Footstep se!lls for P499.99 a pair. The store consistently selis 7000 pairs of these shoes every year. The fixed costs to order more shoes is P80 and the carrying costs are P2.25 per pair. a) What is the economic order quantity? (whole number)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Question

1. The best-sselling pair of shoes Footstep sells for P499.99 a
pair. The store consistently selis 7000 pairs of these shoes
every year. The fixed costs to order more shoes is P80 and
the carrying costs are P2.25 per pair.
a) What is the economic order quantity? (whole number)
b.) How much is the carrying cost? (2 decimal point)
2. Each year you sell 950 units of earphones at a price of P399
each. The variable cost per unit is P675 and the carrying
cost per unit is P18.00. Your fixed cost of ordering is P60.
a.) What is the economic order quantity? (whole number)
b.) How much is the carrying cost? (2 decimal point)
c.) How much is the ordering cost if ordering quantity is
100? (2 decimal point)

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