Buffalo Ltd. uses 2,250 metres of fine gage brass each year. Brass wire costs $12 per metre, ordering costs are $46 per order, and carrying costs are $2.30 per metre. Currently, Buffalo orders 500 metres in each order. Is this the most economical order size? If not. what is the economic order quantity? How much will Buffalo save using the EOQ? (Round answers to 2 decimal places, e.g. 125.74.) Economic order quantity 300 metres Buffalo will save per year %24

Buffalo Ltd. uses 2,250 metres of fine gage brass each year. Brass wire costs $12 per metre, ordering costs are $46 per order, and carrying costs are $2.30 per metre. Currently, Buffalo orders 500 metres in each order. Is this the most economical order size? If not. what is the economic order quantity? How much will Buffalo save using the EOQ? (Round answers to 2 decimal places, e.g. 125.74.) Economic order quantity 300 metres Buffalo will save per year %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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