Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the manager of a book store at city college purcha

The manager of a book store at City College purchases T-shirts from a vendor at a...

70.2K

Verified Solution

Question

Accounting

The manager of a book store at City College purchases T-shirtsfrom a vendor at a cost of $25 per shirt. The bookstore incurs anordering cost of $100 per order, and the annual holding cost is 18%of the purchase cost of a T-shirt. The store manager estimates thatthe demand for T-shirts for the upcoming year will be 1,800 shirts.The store operates 50 weeks per year, five days per week.

The vendor is willing to offer quantity discounts to thebookstore according to the following schedule:

Order Quantity

Discount

0 to 499

0%

500 to 799

2%

700 to 999

3%

1,000 +

4%

a. Determine the optimal order quantity and the total annualinventory cost.

Answer & Explanation Solved by verified expert
4.4 Ratings (936 Votes)
Therefore the optimum order quantity is 1000 units as at    See Answer
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

Biology
1.2K views

on 9 et red Membrane bound proteins These transmembrane doma

Calculus
1.2K views

Discuss the continuity of the function f x x x 3 2 4 1 3...

Algebra
1.2K views

account paying 6 interest Assume that the account is compounded with the same frequency as...

Accounting
1.2K views

Maren received 12 NQOs (each option gives her the right to purchase 13 shares of...

Accounting
1.2K views

The Impact of Coronavirus on Financial Reporting and the Auditors Considring below aspects (explain in...

Accounting
1.2K views

Prepare Hertog Company's journal entries to record the following transactions for the current year May...

Accounting
1.2K views

Please check for me this. Thank you Complete the Statement of Cash Flow matching

Accounting
1.2K views

Blossom Company had ending inventory at end-of-year prices of $216,500 at December 31, 2016; 239,700...

Accounting
1.2K views

Match the following: Transaction 1) Gain on sale of land 2) Purchase equipment 3) Obtain...

Accounting
1.2K views

Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc., produces three sizes of sports...

Accounting
1.2K views

Suponga que el ingreso neto del costo de absorcin es de $ 101 000, el...

Finance
1.2K views

QUESTION FIVE [20] You are a registered accountant and auditor engaged in public practice. A...