Wonderland has a plant that manufactures computer chips.Expected demand for these chips in March 2015 is 52,000 units.Wonderland estimates the cost per purchase order to be $25.The monthly holding cost for one chip is 5c.
REQUIRED:
A)i)Compute the economic order quantity for the chips.
ii.Compute the number of orders in March 2015.
B)List the motives for holding cash in a business.
C)Name at least four factors that influence the length of the credit period in a business.
Correct Answer:
Verified
ii)Number of deliv...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q21: A firm has annual credit sales of
Q23: All of these are assumptions of the
Q24: Pink company expects demand for a product
Q24: Which statement concerning inventory is not true?
A)Regular
Q28: Credit policy is composed of:
A)credit terms.
B)collection policies.
C)vetting
Q29: Credit should be granted to customers in
Q29: Which statement concerning the just-in-time inventory management
Q30: Use the information below to answer the
Q30: If inventory is turned over 7 times
Q31: The length of the period of credit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents