question archive The mechanical engineer at Robinson Manufacturing has developed a new gearbox
The mechanical engineer at Robinson Manufacturing has developed a new gearbox
Subject:BusinessPrice: Bought3
The mechanical engineer at Robinson Manufacturing has developed a new gearbox. The local distributor expects to increase his sales by 30% over the past year due to this new development. Last year's sales were $70,000 at a selling price of $100 per unit. The manager would like to cut costs as much as possible and comes to you for advice.
Relevant cost information includes:Total ordering costs $150.00 per order and the total carrying cost $6 per unit
What is the economic order quantity?
