Follows the economic order quantity model

Assignment Help Financial Management

Reference no: EM132045532

ABC Company sells 3,307 chairs a year at an average price per chair of $192. The carrying cost per unit is $16.18. The company orders 419 chairs at a time and has a fixed order cost of $140 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?

Reference no: EM132045532

Questions Cloud

What is strategic management : What is strategic management? What are the main benefits associated with its main attributes?

Identifies a policy prescription to address the problem : Policy Opinion Editorial: each student will write a 500 word letter to the editor that documents important societal problems at the local, state or Federal.

Estimate daily returns and risk of the security : Competitors: Use Mergent, under search type the name or ticker symbol for the company you selected and then select "competitors".

Compute the margin and turnover ratios for last year : At the beginning of last year, Elway had $28,300,000 in operating assets. Compute the margin (as a percent) and turnover ratios for last year

Follows the economic order quantity model : The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?

How hospitality industry can response when competitor : How hospitality industry can response when competitor initiated price cut?

What will be required return on portfolio : If you invest the money in a stock with a beta of 0.85, what will be the required return on your $5.5 million portfolio?

Compute the new breakeven point in trades : Suppose that the average revenue Big Time earns increases to $900 per trade. Compute the new breakeven point in trades

Calculate the npv and pv index for both machines : Calculate the NPV and PV index for both machines (the packing machine will have a higher PV index).

User Account

All Pages