The economic order quantity of Bulldogs Inc. is 1,000 unit.  They sold their sole product for a selling price of P5. It takes P20,000 a year for Bulldogs Inc. in ordering 1,000 units per transaction. Carrying cost is P4 per unit per year. The lead time for this product is one week. How much sales revenue should Bulldogs Inc. have for this economic order quantity to be plausible? (Use 360 days a year)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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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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The economic order quantity of Bulldogs Inc. is 1,000 unit.  They sold their sole product for a selling price of P5. It takes P20,000 a year for Bulldogs Inc. in ordering 1,000 units per transaction. Carrying cost is P4 per unit per year. The lead time for this product is one week. How much sales revenue should Bulldogs Inc. have for this economic order quantity to be plausible? (Use 360 days a year)

 

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