Solution-Find how should lexa total annual purchase order

Find how should lexa total annual purchase order cost

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Reference no: EM132714406

Problem 1: Lexa Company has correctly computed its economic order quantity at 500 units; however, management feels it would rather order in quantities of 400 units. How should Lexa's total annual purchase order cost and total annual carrying cost for an order quantity of 400 units compare to the respective amounts for an order quantity of 500 units?

A. higher purchase order cost and lower carrying cost
B. lower purchase order cost and higher carrying cost
C. higher purchase order cost and higher carrying cost
D. lower purchase order cost and lower carrying cost

Reference no: EM132714406

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Find how should lexa total annual purchase order cost

Reference no: EM132714406

Reference no: EM132714406

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