(Answered) Question - for supply item abc andrews company has been

Accounting

QUESTION - For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information:

Annual demand in units	250
Days used per year	250
Lead time, in days	10
Ordering costs	$100
Annual unit carrying costs	$20

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

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