The Trektronics store begins each month with 740 phasers in stock. This stock is
ID: 2706904 • Letter: T
Question
The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. The carrying cost per phaser is $26 per year and the fixed order cost is $340. (Enter your answer as directed, but do not round intermediate calculations.)
The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. The carrying cost per phaser is $26 per year and the fixed order cost is $340. (Enter your answer as directed, but do not round intermediate calculations.)
Explanation / Answer
The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. The carrying cost per phaser is $26 per year and the fixed order cost is $340
Carrying costs = (740/2)($26) = (450)($38) = $9620
he order costs are the number of orders times the cost of an order, so:
Restocking costs = 12($340) = $4080
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