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13y ago

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How A firm uses 20000 units of an item per year. The carrying cost is 25 of the 10 price the cost of ordering is 10 and the firm used the EOQ to order. The annual total cost of carrying plus ordering?

2500.00


How to calculate the equivalent annual cost of a project or investment?

To calculate the equivalent annual cost of a project or investment, you need to consider the initial cost, annual expenses, and the project's lifespan. Use formulas like the annuity formula or the present value formula to determine the equivalent annual cost. This helps in comparing different projects or investments on an annual basis.


How do you calculate the equivalent annual cost for a project or investment?

To calculate the equivalent annual cost for a project or investment, you need to consider the initial cost, annual operating expenses, salvage value, and the project's lifespan. The formula for equivalent annual cost is the sum of annual operating expenses, depreciation, and the opportunity cost of capital. This calculation helps to determine the annual cost of the project or investment over its lifespan, making it easier to compare different options.


Economic Order Quantity EOQ questions?

Economic order quantity is the small lot size to minimize the inventory cost.


Where is hydro power most found in the world?

Calculate the Economic Order Quantity (EOQ) for the following data: Annual Demand Rate (R) = 1,000 Ordering cost per order (C) = $30 Holding cost per unit per year (H) = $24


How do you calculate average daily cost of goods sold?

Annual cost of goods sold / 365


Is transportation cost an ordering cost?

yes transportation an ordering cost


What are the components of ordering cost?

eoq =economic ordering cost is constant


What is the difference between the ordering cost and carrying cost?

Ordering cost is the cost to get it here. Carrying cost is the cost to keep it here.


How do you calculate annual opportunity cost?

To calculate annual opportunity cost, identify the best alternative use of your resources, typically time or money, that you forgo when making a decision. Determine the potential returns or benefits associated with that alternative. Subtract any costs associated with pursuing that alternative from its expected returns to find the net benefit. The annual opportunity cost is then the forgone net benefit expressed on an annual basis.


How do you calculate annual precipitation?

How do you calculate the annual precipitation?


How do you calculate the annual holding cost for inventory?

The annual holding cost for inventory is calculated by multiplying the average inventory level by the cost to hold one unit of inventory for a year. This cost typically includes expenses such as storage, insurance, and obsolescence.