The following inventory date have been established for Warriors Company: Order must be placed in multiples of 100 Annual sales are 338,000 units The purchase price per unit is P6 Carrying cost is 20% of the purchase price of the goods Fixed order costs is P48 Three days are required for delivery. What is the EOQ? How many orders should Warriors placed each year? How many units must be order every time?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter15: Managing Short-term Assets
Section: Chapter Questions
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The following inventory date have been established for Warriors Company:

Order must be placed in multiples of 100

Annual sales are 338,000 units

The purchase price per unit is P6

Carrying cost is 20% of the purchase price of the goods

Fixed order costs is P48

Three days are required for delivery.

  1. What is the EOQ?
  2. How many orders should Warriors placed each year?
  3. How many units must be order every time?
  4. Calculate the total cost of ordering and carrying cost if the order quantity is
  • 4,000 units
  • 4,800 units
  • 6,000 units
  • At EOQ

Thank you so much!

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PART 4 PLEASE!

The following inventory date have been established for Warriors Company:

Order must be placed in multiples of 100

Annual sales are 338,000 units

The purchase price per unit is P6

Carrying cost is 20% of the purchase price of the goods

Fixed order costs is P48

Three days are required for delivery.

  1. What is the EOQ?
  2. How many orders should Warriors placed each year?
  3. How many units must be order every time?
  4. Calculate the total cost of ordering and carrying cost if the order quantity is
  • 4,000 units
  • 4,800 units
  • 6,000 units
  • At EOQ

Thank you so much!

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