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Green Lantern, a pub & grill estimates that it will sell 10,000 beers per year which it will purchase from a distributor in Luanshya

Accounting Oct 13, 2020

Green Lantern, a pub & grill estimates that it will sell 10,000 beers per year which it will purchase from a distributor in Luanshya. A beer costs K18.00 to purchase and K2.00 in freight charges each. The company borrows funds at 9 % interest rate to finance inventories. Green Lantern's purchasing agent has calculated that it costs K50.00 to place an order for beers and that the handling is K3.00 for each beer. Required: (a) Calculate the number of beers that Green Lantern should request in each order. (Due to the nature of the question you are requested NOT to round off your answer at

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