Due to Unprecedented Growth During the Year,Flowers by Kelly Decided

question 114

Essay

Due to unprecedented growth during the year,Flowers by Kelly decided to use some of its surplus cash to increase the size of several inventory order quantities that had been previously determined using an EOQ model.
Required:
Identify whether increasing the size of inventory orders will increase,decrease,or have no effect on each of the following items.
$$\begin{array} { | l | l | } \hline \quad \quad \quad \quad& \text { a. Average inventory } \\\hline & \text { b. Cost of goods sold } \\\hline & \text { c. Number of orders per year } \\\hline & \text { d. Total annual carrying costs } \\\hline & \text { e. Total annual carrying and ordering costs } \\\hline & \text { f. Total annual ordering costs } \\\hline\end{array}$$
a.Average inventory
b.Cost of goods sold
c.Number of orders per year
d.Total annual carrying costs
e.Total annual carrying and ordering costs
f.Total annual ordering costs

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Definitions:

Landlord's Consent

Permission given by a landlord, often required for specific actions by a tenant, such as subletting or altering the property.

Exclusive Right

A legal provision granting a party sole permission to use, produce, or sell a particular product or service.

Possession

The act of having or controlling something, either physically or legally.

Covenant of Quiet Enjoyment

A lease provision assuring the tenant a right to freely and quietly use the leased premises without disturbance by claims of superior title.