How many chair should folsom furniture request in each order

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Economic order quantity (Appendix 7.2). The purchasing agent responsible for ordering chairs estimates that Folsom Furniture sells 30,000 chairs evenly throughout each year, that each order costs $15 to place, and that holding each chair in inventory for a year costs $4 per chair.

a. How many chairs should Folsom Furniture request in each order?

b. How many times per year should Folsom Furniture order chairs?

Text Book: Managerial Accounting: An Introduction to Concepts, Methods and Uses By Michael Maher, Clyde Stickney, And Roman Weil

Reference no: EM13903195

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