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Point 1: You are managing a company that stocks and distributes hardware. The company employs two purchasing agents who receive combined salaries of $81,000. They process six thousand purchase requests per year. Average inventory in storage is $581,000, and the total cost of running the warehouse is $206,000. You are told that the company purchases five thousand hammers per year at a cost of $5.06 per hammer.
Question 1: Using the EOQ formula, how many hammers should be ordered at one time? (Do not round imtermediate calculations andround final answer to the nearest whole dollar, i.e. 123.45 = 123)
Financial Statement Analysis and Preparation
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