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?
$\begin{array}{|c|l|c|}\hline & {\text { A }} & \text { B } \\\hline 1 & & \\\hline 2 & & \\\hline 3 & \text { Annual Demand: } & \\\hline 4 & & \\\hline 5 & \text { Cost per Unit: } & \\\hline 6 & \text { Ordering Cost: } & \\\hline 7 & \text { Carrying Cost: } & \\\hline 8 & & \\\hline 9 & \text { Order Quantity: } & \\\hline 10 & & \\\hline 11 & \text { Total Cost: } & \\\hline\end{array}$

---

Definitions:

Voluntary Basis

Participation or action taken by an individual or entity without coercion, typically without expectation of payment.

Consideration

An item of worth traded between entities within a contractual agreement, rendering the contract enforceable by law.

Enforce

To compel observance of or compliance with a law, rule, or obligation.

Consideration

The concept in contract law that involves something of value exchanged between parties, which is necessary for a contract to be considered legally binding.