From the Data in the Table Below, Calculate the Total

question 65

Essay

From the data in the table below, calculate the total annual cost using the economic order quantity model.
$\begin{array}{|l|l}\hline \text { Data } & \\\hline \text { Annual Demand Rate } & 10,000 \\\hline \text { Ordering Cost } & \$ 150 \\\hline \text { Unit Cost } & \$ 16 \\\hline \text { Carrying Charge Rate } & 0.2 \\\hline \text { Order Quantity } & 1,000\end{array}$

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Definitions:

Accounts Receivable

Liabilities of customers to a firm for provisions or merchandise that have been delivered but payment is outstanding.

Capital Balance

The amount recorded in a shareholder's or partner's equity account, reflecting their investment in the business.

Full Time

Employment status characterized by working a minimum number of hours defined by the employer, typically involving benefits not offered to part-time employees.

Net Income

The net income is the final amount of profit a company makes after deducting all costs, taxes, and expenses from its total revenue.