What is aberwald minimum cost of ordering

Assignment Help Managerial Accounting

Reference no: EM132749904

Aberwald Corporation expects to order 125,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order; the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 25 percent of the purchase price. (Assume a 360-day year.)

Problem 1: If Aberwald holds a safety stock equal to a 30-day supply of chips, what is Aberwald's minimum cost of ordering and carrying inventory?

Problem 2: If aberwald holds a safety stock equal to a 30-day supply of chips what is it's average inventory level?

Reference no: EM132749904

Questions Cloud

What the incremental cost was : If the alternative set up was adopted, direct cost could have been 850, 000. In addition, Mozart fixed costs were 100, 000. The incremental cost was ?

Unit L/615/2702 Managing Continuous Organisational : Unit L/615/2702 Managing Continuous Organisational Improvement Assignment Help and Solution, ATHE Level 7 Diploma in Management - Assessment Writing Service

How the change in competitiveness affects equilibrium price : International trade can have big effects on domestic markets. For both an import good and an export good (in other words, address each bulleted item below.

Estimate the standard uncertainty of the purity : -A dieldrin reference standard is described by the supplier as 99.0 ±0.5". Estimate the standard uncertainty of the purity.

What is aberwald minimum cost of ordering : If Aberwald holds a safety stock equal to a 30-day supply of chips, what is Aberwald's minimum cost of ordering and carrying inventory?

Discuss the portrayal of women in pakistani advertisements : Discuss the portrayal of women in Pakistani advertisements do you think there has been any evolution or change in this portrayal over the past decade.

What is a correct context for the speech : What is a correct context for the speech? Where and when will it be given?

Cyber security is major concern to legitimate businesses : Cyber Security is a major concern to legitimate businesses around the world. It is also the largest growing illegitimate business.

Summarize the article and discuss how it relates to course : For the term paper, you are required to pick a current economic topic that relates to the material we have covered or will cover in this course.

User Account

All Pages