The economic order quantity of Inc. is 1,000 unit. They sold their sole product for a selling price of P5. It takes P20,000 a year for Inc. in ordering 1,000 units per transaction. Carrying cost is P4 per unit per year. The lead time for this product is one week. How much sales revenue should Inc. have for this economic order quantity to be plausible? (Use 360 days a year)

The economic order quantity of Inc. is 1,000 unit. They sold their sole product for a selling price of P5. It takes P20,000 a year for Inc. in ordering 1,000 units per transaction. Carrying cost is P4 per unit per year. The lead time for this product is one week. How much sales revenue should Inc. have for this economic order quantity to be plausible? (Use 360 days a year)

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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