Skysong Co. has the following quantity discount policy with its supplier....

70.2K

Verified Solution

Question

Accounting

image
Skysong Co. has the following quantity discount policy with its supplier. Quantity 1-499 units 500-999 units 1.000-1.999 units 2,000 units Price per Unit $15.00 $14.70 $14.20 $13.30 The economic order quantity is 900 units and the annual usage is 20.250 units. The ordering cost (K) is $26 per order and the carrying cost of inventory (H) is $1.30 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, eg 125.74) The most cost effective order quantity is Total Cost

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students