Determining the current carrying cost of redan manufacturing, Accounting Basics

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Determining the current carrying cost of redan manufacturing

Problem:

Redan Manufacturing uses 3,100 switch assemblies per week and then reorders another 3,100. The relevant carrying cost per switch assembly is $13.00, and the fixed order cost is $1,550.

Required:

Question 1: What is the current carrying cost?

Question 2: What is the order cost?

Question 3: Calculate the economic order quantity.

Note: Please show how you came up with the solution.

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Accounting Basics: Determining the current carrying cost of redan manufacturing

Reference No:- TGS0889740

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Accounting Basics: Determining the current carrying cost of redan manufacturing

Reference No:- TGS0889740

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Recent Questions Asked Accounting Basics

Q : Average collection period for kyoto joe

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Ask an Expert for Answer!!

Accounting Basics: Determining the current carrying cost of redan manufacturing

Reference No:- TGS0889740

Recent Questions Asked Accounting Basics

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Q : Calculate the average collection period

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