Mark achin sells 3600 electric motors each year the cost of


Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year.

There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his total ordering cost be for the year?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Mark achin sells 3600 electric motors each year the cost of
Reference No:- TGS01187033

Expected delivery within 24 Hours