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An Office Supply Company Is Attempting to Determine the Order

question 59

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An office supply company is attempting to determine the order quantity for laser printer toner cartridges which are sold to local businesses. Annual demand is 20,000 units and each cartridge costs the store $25. It costs $30 to place an order and the inventory carrying cost rate is 25% of the value of the item. The following spreadsheet has been set up to solve the problem. What cell is the variable cell in this problem?  A  B 123 Annual Demand: 20,00045 Cost per Unit: $256 Ordering Cost: $307 Carrying Cost: 25%89 Order Quantity: 483.731011 Total Cost: $502,738.61\begin{array}{|c|c|c|} \hline& \text { A } & \text { B } \\ \hline 1 & & \\\hline 2 & & \\\hline 3 & \text { Annual Demand: } & 20,000 \\\hline 4 & & \\\hline 5 & \text { Cost per Unit: } & \$ 25 \\\hline 6 & \text { Ordering Cost: } & \$ 30 \\\hline 7 & \text { Carrying Cost: } & 25 \% \\\hline 8 & & \\\hline 9 & \text { Order Quantity: } & 483.73 \\\hline 10 & & \\\hline 11 & \text { Total Cost: } & \$ 502,738.61 \\\hline\end{array}

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