An Office Supply Company Is Attempting to Determine the Order

question 34

Essay

An office supply company is attempting to determine the order quantity for Mt. White fountain pens which are sold to local executives. Annual demand is 5,000 units and each pen costs the store $50. It costs $75 to place an order and the inventory carrying cost rate is 30% of the value of the item.
What values should go in cells B3:B11 of the spreadsheet for this problem if Q = 223.61?
$\begin{array}{|c|l|c|}\hline & {\text { A }} & \text { B } \\\hline 1 & & \\\hline 2 & & \\\hline 3 & \text { Annual Demand: } & \\\hline 4 & & \\\hline 5 & \text { Cost per Unit: } & \\\hline 6 & \text { Ordering Cost: } & \\\hline 7 & \text { Carrying Cost: } & \\\hline 8 & & \\\hline 9 & \text { Order Quantity: } & \\\hline 10 & & \\\hline 11 & \text { Total Cost: } & \\\hline\end{array}$

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Definitions:

Under Construction

Refers to a building or site that is currently in the process of being constructed or developed.

Agency Relationship

A legal arrangement in which one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.

Legal Obligations

Duties imposed by law, requiring individuals or entities to conform to specific conduct or to abstain from certain actions.

Authority

The right or power assigned to an individual or organization to make decisions, give orders, and enforce rules.