Party Animals sells soft-toy stuffed tigers. Products, Inc., manufactures many different stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week, at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase-order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates):

What is the economic order quantity using the estimated amounts?
A) 223 soft-toy tigers
B) 119 soft-toy tigers
C) 273 soft-toy tigers
D) 325 soft-toy tigers

Question

Party Animals sells soft-toy stuffed tigers. Products, Inc., manufactures many different stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week, at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase-order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates) :

What is the economic order quantity using the estimated amounts?

What is the economic order quantity using the estimated amounts?
A) 223 soft-toy tigers 
B) 119 soft-toy tigers 
C) 273 soft-toy tigers 
D) 325 soft-toy tigers

Quizplus · Accepted Answer

The Answer of Party Animals sells soft-toy stuffed tigers. Products, Inc., manufactures many different stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week, at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase-order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates):

What is the economic order quantity using the estimated amounts?
A) 223 soft-toy tigers 
B) 119 soft-toy tigers 
C) 273 soft-toy tigers 
D) 325 soft-toy tigers

Party Animals Sells Soft-Toy Stuffed Tigers