Party Animals orders 3,000 stuffed hippos per year, at $4 per hippo, FOB destination.Party Animals earns 2% on its cash investments.The purchase order lead time is 3 weeks.The following data are available:
Required:
What is the cost of the prediction error?

Question

Party Animals orders 3,000 stuffed hippos per year, at $4 per hippo, FOB destination.Party Animals earns 2% on its cash investments.The purchase order lead time is 3 weeks.The following data are available:
  Required:
What is the cost of the prediction error?

Quizplus · Accepted Answer

The Answer of Party Animals orders 3,000 stuffed hippos per year, at $4 per hippo, FOB destination.Party Animals earns 2% on its cash investments.The purchase order lead time is 3 weeks.The following data are available:
  Required:
What is the cost of the prediction error?

Party Animals Orders 3,000 Stuffed Hippos Per Year, at $4