Taronga Toys sells stuffed wombats.Products Inc.manufactures many different stuffed animals.Taronga Toys orders 10 400 wombats per year,200 per week,at $35 per koala.The manufacturer covers all shipping costs.Taronga Toys earns 10% on its cash investments.The purchase-order lead time is 3 weeks.Taronga Toys sells 185 wombats per week.The following data are available (based on management's estimates):
Variant question
Estimated ordering costs per purchase order $\quad \$ 10$
Estimated insurance, materials handling, breakage,
and so on, per year $\$ 3$
Actual ordering costs per order $\$ 15$
Using the estimated amounts above,what is the economic order quantity (EOQ)?

Question

Taronga Toys sells stuffed wombats.Products Inc.manufactures many different stuffed animals.Taronga Toys orders 10 400 wombats per year,200 per week,at $35 per koala.The manufacturer covers all shipping costs.Taronga Toys earns 10% on its cash investments.The purchase-order lead time is 3 weeks.Taronga Toys sells 185 wombats per week.The following data are available (based on management's estimates):
Variant question
Estimated ordering costs per purchase order $\quad \$ 10$ 
Estimated insurance, materials handling, breakage, 
and so on, per year $\$ 3$ 
Actual ordering costs per order $\$ 15$
Using the estimated amounts above,what is the economic order quantity (EOQ)?

Quizplus · Accepted Answer

The Answer of Taronga Toys sells stuffed wombats.Products Inc.manufactures many different stuffed animals.Taronga Toys orders 10 400 wombats per year,200 per week,at $35 per koala.The manufacturer covers all shipping costs.Taronga Toys earns 10% on its cash investments.The purchase-order lead time is 3 weeks.Taronga Toys sells 185 wombats per week.The following data are available (based on management's estimates):
Variant question
Estimated ordering costs per purchase order $\quad \$ 10$ 
Estimated insurance, materials handling, breakage, 
and so on, per year $\$ 3$ 
Actual ordering costs per order $\$ 15$
Using the estimated amounts above,what is the economic order quantity (EOQ)?

Taronga Toys Sells Stuffed Wombats $10\quad \$ 10$10 Estimated Insurance, Materials Handling, Breakage, and So On, Per

Taronga Toys Sells Stuffed Wombats $\quad \$ 10$ Estimated Insurance, Materials Handling, Breakage,
and So On, Per