Question

Cheeseburger and Taco Company purchases 10,570 boxes of cheese each year. It costs $20 to place...

Cheeseburger and Taco Company purchases 10,570 boxes of cheese each year. It costs $20 to place and ship each order and $8.89 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual ordering cost of cheese inventory.

Round the answer to two decimals.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

EOQ VALUE IS NOT ROUNDED. TAKEN FULL VALUE, AS NOTHING WAS MENTIONED ABOUT ROUNDING

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cheeseburger and Taco Company purchases 18,202 boxes of cheese each year. It costs $23 to place...
Cheeseburger and Taco Company purchases 18,202 boxes of cheese each year. It costs $23 to place and ship each order and $4.00 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate Economic Order Quantity
Cheesburger and Taco Company purchases 13,510 boxes of cheese each year. It costs $24 to place...
Cheesburger and Taco Company purchases 13,510 boxes of cheese each year. It costs $24 to place and ship each order and $5.89 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. How many orders will be placed each year? Round the answer to the whole number
Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100 per...
Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100 per order, carrying costs are 5% of the inventory value, and the price is of $2.00 per box. The vendor now offers a quantity discount of 1% per box if the company buys pens in order sizes of 20,000 boxes. Should the company accept the quantity discount? Show your calculations to justify your decision.
10. Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100...
10. Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100 per order, carrying costs are 5% of the inventory value, and the price is of $2.00 per box. The vendor now offers a quantity discount of 1% per box if the company buys pens in order sizes of 20,000 boxes. Should the company accept the quantity discount? Show your calculations to justify your decision.
Mama Leone's Frozen Pizzas uses 59,000 pounds of cheese per year. Each pound costs $5.50. The...
Mama Leone's Frozen Pizzas uses 59,000 pounds of cheese per year. Each pound costs $5.50. The ordering cost for the cheese is $657.90 per order, and its carrying cost is $1.29 per pound per year. Calculate the firm's economic order quantity (EOQ) for the cheese. Mama Leone's operates 260 days per year and maintains a minimum inventory level of 55 days' worth of cheese. Assuming that the lead time to receive orders of cheese is 33 days, calculate the reorder...
Mama​ Leone's Frozen Pizzas uses 41,000 pounds of cheese per year. Each pound costs​ $5.50. The...
Mama​ Leone's Frozen Pizzas uses 41,000 pounds of cheese per year. Each pound costs​ $5.50. The ordering cost for the cheese is ​$1357.30 per​ order, and its carrying cost is ​$2.77 per pound per year. Calculate the​ firm's economic order quantity​ (EOQ) for the cheese. Mama​ Leone's operates 220 days per year and maintains a minimum inventory level of 4 ​days' worth of cheese. Assuming that the lead time to receive orders of cheese is 3 ​days, calculate the reorder...
Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95 per...
Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.75 per box. Moreover, management has determined that the EOQ is 5,669.92 boxes. Note: The ordering costs and EOQ differ from problem 1. The vendor now offers a quantity discount of $0.02 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying...
The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products...
The office manager for the Gotham Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The following discount price schedule is provided by the office supply company: Order Quantity (in boxes) Price per Box 200-999 $16 1000-2999 14 3000-5999 13 6000+ 12 a. Determine the optimal order quantity and the total annual inventory cost....
Millbridge Hospital buys 10,000 boxes of latex gloves every year. Each box costs the hospital $7....
Millbridge Hospital buys 10,000 boxes of latex gloves every year. Each box costs the hospital $7. The cost to place an order for the gloves—which covers the employee staff time, shipping costs, the hospital’s receiving center for inventorying, for example—is estimated at $50 per order. Carrying costs (for storing the boxes, verifying the inventory periodically, etc.) are estimated at 50 cents per box per year. Millbridge uses a 6 percent interest-cost assumption in its calculations. How many boxes should be...
Q2. A company purchases 25,000 litres of material each year from a single supplier. At the...
Q2. A company purchases 25,000 litres of material each year from a single supplier. At the moment, the company obtains the material in batch sizes of 800litres. The materials costs $16 per litre. The cost of ordering new batch is $32 and the cost of holding one litre in stock is $4 a year plus an interest cost equal to 15% of the purchase price of the material. Calculate: a. The Economic Order Quantity b. Total ordering cost c. Total...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT