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A local sports equipment retailer sells roughly 3150 pairs of skates throughout the year. Annual holding cost of $5 per pair of skates and ordering cost is $32 per order. The store is open 280 days a year (closed on weekends and holidays). On average it takes 8 days between ordering stock and receiving it.
a. What is the EOQ?
b. How many times does the store have to reorder skates throughout the year?
c. What is the length of time between each order? (how many days in between of each order)
d. What is the total inventory cost?
Maxcorp's bonds sell for $1,223.64. The bond life is 9 years, and the yield to maturity is 8.8%. What is the coupon rate on the bonds?
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