Problemlaird company uses 405 units of a part each year the, Ask an Expert

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Problem

Laird Company uses 405 units of a part each year. The cost of placing one order is $5; the cost of carrying one unit in inventory for a year is $2. Laird currently orders 81 units at a time.

Required:

A. The annual ordering cost of Laird's current policy is.
B. The annual carrying cost of Laird's current policy is.
C. The total cost of Laird's current policy is.
D. What is the economic order quantity (EOQ) for Laird?
E. What is the total inventory-related cost at the EOQ?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92724810

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