question archive What additional annual cost is the shop incurring by staying with this order size, if Garden Variety Flower Shop uses 810 clay pots a month
What additional annual cost is the shop incurring by staying with this order size, if Garden Variety Flower Shop uses 810 clay pots a month
Subject:ManagementPrice: Bought3
What additional annual cost is the shop incurring by staying with this order size, if Garden Variety Flower Shop uses 810 clay pots a month. The pots are purchased at $3.30 each. Annual carrying costs per pot are estimated to be 20 percent of cost, and ordering costs are $15 per order. The manager has been using an order size of 1,750 flower pots.
