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Homework answers / question archive / If D = 500,000 units per year, C = 40 percent of acquisition cost per unit per year, S = $59

If D = 500,000 units per year, C = 40 percent of acquisition cost per unit per year, S = $59

Accounting

If D = 500,000 units per year, C = 40 percent of acquisition cost per unit per year, S = $59.50 per order, and ac = $5.50 per unit: 

a) What is the EOQ? 

b) What is the TSC at the EOQ? 

c) How much would the TSC increase if the order quantity must be 6,000 units because of a standard shipping-container size? 

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