Problemgaming inc believes it will sell 4 million games, Ask an Expert

Accounting

Problem:

Gaming Inc believes it will sell 4 million games this coming year.This figue is for annual sales. The inventory manager plans to games 25 times over the next year. The carrying cost is $0.01 per game per year. The order cost is $532 per order. It turns out the marketing manager has underestimated the game's market. The games are a smash, and current estimates are that the company wills sell 8 million of them per year.

Required:

Question: Find the economic order quantity and verify that is the correct order quantity by finding the new carrying cost and new ordering cost.

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172063

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