Economic Order Quantity Ottis, Inc., uses 585,225 plastic housing units each year in its production of paper shredders. The cost of placing an order is $42. The cost of holding one unit of inventory for one year is $21. Currently, Ottis places 153 orders of 3,825 plastic housing units per year. Required: 1. Compute the economic order quantity. fill in the blank 1 units 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost $fill in the blank 2 Carrying cost  fill in the blank 3 Total cost $fill in the blank 4 3. How much money does using the EOQ policy save the company over the policy of purchasing 3,825 plastic housing units per order? Round your answer to the nearest dollar $fill in the blank

Brightstone Tire and Rubber Company has capacity to produce 272,000 tires. Brightstone presently produces and sells 208,000 tires for the North American market at a price of $111 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 32,000 tires for $91.65 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $42 Direct labor 16 Factory overhead (60% variable) 26 Selling and administrative expenses (40% variable) 22 Total $106 Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $6 per tire. In addition, Euro has made the order conditional on receiving…

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Istanbul Company makes special equipment. Each unit sells for $420. Istanbul uses just-in-time inventory procedures; it produces and sells 12,500 units per year. It has provided the following income statement data: Traditional Format Sales revenue Cost of goods sold $5,250,000 3,100,000 Gross profit 2,150,000 Selling & admin. expenses 670,000 Operating income A) increase by $16,940. Contribution Margin Format Sales revenue Variable costs: Manufacturing Selling & admin. $1,480,000 Operating income B) decrease by $22,500. Manufacturing Selling & admin. Contribution margin C) increase by $27,500. Fixed costs: $5,250,000 1,200,000 400,000 3,650,000 A foreign company has offered to buy 110 units for a reduced sales price of $250 per unit. The marketing manager says the sale will have no negative impact the company's regular sales. The sales manager says that this sale will not require any additional selling and administrative costs, as it is a one-time deal. The production manager reports…

Ordering and Carrying Costs Ottis, Inc., uses 683,910 plastic housing units each year in its production of paper shredders. The cost of placing an order is $29. The cost of holding one unit of inventory for one year is $20. Currently, Ottis places 149 orders of 4,590 plastic housing units per year. Required: 1. Compute the annual ordering cost. $fill in the blank 1 2. Compute the annual carrying cost. $fill in the blank 2 3. Compute the cost of Ottis’s current inventory policy. $fill in the blank 3 Is this the minimum cost?

Required information [The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12 per hour. Iguana has the following inventory policies: • Ending finished goods inventory should be 40 percent of next month's sales. • Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June July August 360 420 470 570 545 595 Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $10,800 cash on…