Party Animals orders 5,200 stuffed giraffes per year, at $6 per giraffe, FOB destination.Party Animals earns 3% on its cash investments.The purchase order lead time is 4 weeks.The following data are available:
Required:
What is the cost of the prediction error?

Question

Party Animals orders 5,200 stuffed giraffes per year, at $6 per giraffe, FOB destination.Party Animals earns 3% on its cash investments.The purchase order lead time is 4 weeks.The following data are available:
  Required:
What is the cost of the prediction error?

Quizplus · Accepted Answer

The Answer of Party Animals orders 5,200 stuffed giraffes per year, at $6 per giraffe, FOB destination.Party Animals earns 3% on its cash investments.The purchase order lead time is 4 weeks.The following data are available:
  Required:
What is the cost of the prediction error?

Party Animals Orders 5,200 Stuffed Giraffes Per Year, at $6