Taronga Toys Sells Stuffed Wombats Estimated Insurance, Materials Handling, Breakage,
and So On, Per
Multiple Choice
Taronga Toys sells stuffed wombats.Products Inc.manufactures many different stuffed animals.Taronga Toys orders 10 400 wombats per year,200 per week,at $35 per koala.The manufacturer covers all shipping costs.Taronga Toys earns 10% on its cash investments.The purchase-order lead time is 3 weeks.Taronga Toys sells 185 wombats per week.The following data are available (based on management's estimates) :
Variant question
Estimated ordering costs per purchase order
Estimated insurance, materials handling, breakage,
and so on, per year
Actual ordering costs per order
Using the estimated amounts above,what is the economic order quantity (EOQ) ?
A) 119 stuffed wombats
B) 335 stuffed wombats
C) 325 stuffed wombats
D) 273 stuffed wombats
Correct Answer:

Verified
Correct Answer:
Verified
Q13: In managing inventory,what are the costs that
Q14: In managing inventory,what are the costs of
Q15: Which type of companies would benefit from
Q19: An inventory item of Nullabor Manufacturing has
Q20: The economic order quantity (EOQ)model solely guides
Q21: Satellite Access Corporation manufactures set-top boxes
Q23: A demand-pull system in which each component
Q58: Backflush costing is usually restricted to companies
Q97: The annual relevant carrying costs of inventory
Q107: What are the principles of lean accounting?