Abc company sells 4595 chairs a year at an average price, Financial Management

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Abc company sells 4595 chairs a year at an average price

ABC Company sells 4,595 chairs a year at an average price per chair of $144. The carrying cost per unit is $39.13. The company orders 486 chairs at a time and has a fixed order cost of $71.1 per order. The chairs are sold out before they are restocked. What are the total shortage costs?

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Financial Management: Abc company sells 4595 chairs a year at an average price

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Financial Management: Abc company sells 4595 chairs a year at an average price

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