Kingston Distributors Inc. has Total sales of 80,000 units
Kingston Distributors Inc. has Total sales of 80,000 units and an… Kingston Distributors Inc. has Total sales of 80,000 units and an economic ordering quantity (EOQ) of 4,000 units. The firm’s ordering cost is $400 per order. Other costs associated with inventory are as follows: Storage $0.50 per unitHandling 1.60 per unitInsurance 1.90 per unit Required:a) If Kingston Distributors increases their annual sales to 100,000 units, what will its new Economic Ordering Quantity be? (3 marks) b) How much is the firm’s total inventory cost increase when its EOQ changes? (6 marks) c) By how much would the firm’s total inventory cost increase if they have safety stock of 6,000 units (1 marks)Accounting Business Financial Accounting FIN 401
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