FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Economic order quantity
(EOQ).
Tinnendo, Inc. believes it will sell
4
million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens
25
times over the next year. The carrying cost is
$0.01
per zen-zen per year. The order cost is
$510
per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost.What is the annual carrying cost for the zen-zens?
(Round to the nearest dollar.)
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