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A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds 100 pounds to 999 pounds 1,000 pounds or more $20 per pound $19 per pound $18 per pound The cost to place an order is $40. Annual demand is 3,000 units. The holding (or carrying) cost is 25 percent of the material price. 9a. What is the EOQ? 96. What is the reorder point?

A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds 100 pounds to 999 pounds 1,000 pounds or more $20 per pound $19 per pound $18 per pound The cost to place an order is $40. Annual demand is 3,000 units. The holding (or carrying) cost is 25 percent of the material price. 9a. What is the EOQ? 96. What is the reorder point?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9. A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds 100 pounds to 999 pounds 1,000 pounds or more $20 per pound $19 per pound $18 per pound The cost to place an order is $40. Annual demand is 3,000 units. The holding (or carrying) cost is 25 percent of the material price. 9a. What is the EOQ? 96. What is the reorder point?
Transcribed Image Text:9. A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds 100 pounds to 999 pounds 1,000 pounds or more $20 per pound $19 per pound $18 per pound The cost to place an order is $40. Annual demand is 3,000 units. The holding (or carrying) cost is 25 percent of the material price. 9a. What is the EOQ? 96. What is the reorder point?
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