Economic order quantity model in placing the orders

Assignment Help Financial Management

Reference no: EM131309648

Cheesburger and Taco Company purchases 17,188 boxes of cheese each year. It costs $19 to place and ship each order and $3.28 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

How many orders will be placed each year? Round the answer to the whole number

Reference no: EM131309648

Questions Cloud

Annual cash flow is projected : We are examining a new project. We expect to sell 6,000 units per year at $74 net cash flow apiece for the next 10 years. In other words, the annual cash flow is projected to be $74 × 6,000 = $444,000. The relevant discount rate is 18 percent, and th..

Calculate the discount rate consistent with a cap rate : Calculate the discount rate consistent with a cap rate of 12 percent and a growth rate of 6 percent. Show how your answer would change if the cap rate dropped to 10 percent while the growth rate declined to 5 percent.

What is before-tax cost of capital for debt financing : Black Hill, Inc. sells $100 million worth of 26-year to maturity 14.41% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $1022 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

What is the annual carrying costs of post card inventory : Cheeseburger and Taco Company purchases 9,165 boxes of cheese each year. It costs $12 to place and ship each order and $8.70 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is th..

Economic order quantity model in placing the orders : Cheesburger and Taco Company purchases 17,188 boxes of cheese each year. It costs $19 to place and ship each order and $3.28 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Assume credit terms offered to your firm by your suppliers : Assume the credit terms offered to your firm by your suppliers are 3.4/6, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30. The effective annual cost of the trade credit is (Round to two decima..

What is the stock price after the recap : Lee Manufacturing's value of operations is equal to $960.00 million after a recapitalization (the firm had no debt before the recap). Lee raised $244.00 million in new debt and used this to buy back stock. Lee had no short-term investments before or ..

Positively correlated with the economy : Assume a company, correlated with the economy, is evaluating six projects of which two are positively correlated with the economy, two are negatively correlated, and two are not correlated with it as all. Which two projects would it select to minimiz..

User Account

All Pages