XYZ COMPANY NEEDS TO PURCHASE 600,000 UNITS IN 2023 FROM ITS SUPPLIER. ORDER COSTS ARE...
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XYZ COMPANY NEEDS TO PURCHASE 600,000 UNITS IN 2023 FROM ITS SUPPLIER. ORDER COSTS ARE $25 PER ORDER, AND CARRYING COSTS ARE $23/UNIT PER YEAR. XYZ COMPANY HAS A HURDLE RATE OF 8%, AND THE UNITS THAT XYZ PURCHASES FROM ITS SUPPLIER COST $400/UNIT.
19. What is the EOQ for XYZ Company? a. 539 units. b. 639 units. c. 739 units. d. 839 units.
20. What is the total relevant cost (ordering cost + carrying cost) for the year for XYZ Company at an order size equal to 1000 units?
- $42,500
- $43,000
- $43,500
- $44,000
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